Question
a grocery store, shelf space is limited and must be used effectively to increase profit. Two cereal items, FL and KC, compete for total shelf
a grocery store, shelf space is limited and must be used effectively to increase profit. Two cereal items, FL and KC, compete for total shelf space of 60 square feet. A box of FL occupies 0.2 ft2 and a box of KC needs 0.4 ft2. The maximum daily demands of FL and KC are 200 and 120 boxes, respectively. A box of FL nets PhP 10 in profit and a box of KC PhP 13.50. The owner of the grocery thinks that because the unit profit of KC is 35% higher than that of FL, KC should also be allocated 35% more space than FL, which amounts to allocating about 57% to KC and 43% to FL. What do you think?
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