Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

A cosmetics company has created two new perfumes: Summer Passion and Ocean Breeze. It costs $5.25 to purchase the fragrance needed for each bottle of

image text in transcribed
image text in transcribed
A cosmetics company has created two new perfumes: Summer Passion and Ocean Breeze. It costs $5.25 to purchase the fragrance needed for each bottle of Summer Passion and $4.70 for each bottle of Ocean Breeze. The marketing department has stated that at least 30% but no more than 70% of the product mix must be Summer Passion; the forecasted monthly demand is 7,000 bottles and is estimated to increase by six bottles for each $1 spent on advertising. For Ocean Breeze, the demand is forecast to be 12,000 bottles and is expected to increase by 14 bottles for each $1 spent on advertising. Summer Passion sells for $42.00 per bottle and Ocean Breeze for $30.00 per bottle. A monthly budget of $100,000 is available for both advertising and purchase of the fragrances. Complete parts a and b. a. Develop and solve a linear optimization model to determine how much of each type of perfume should be produced to maximize the net profit. Note that the amounts can be fractions of bottles The cosmetics company should produce bottles of Summer Passion and bottles of Ocean Breeze, and should spend $ on advertising for Summer Passion and $ on advertising for Ocean Breeze. The net profit is $ (Round to two decimal places as needed.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics For Business & Economics

Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran

14th Edition

1337901067, 978-1337901062

Students also viewed these Mathematics questions

Question

2. Follow through with fair consequences.

Answered: 1 week ago