Question
A large sporting goods store is placing an order for bicycles with its supplier. Four models can be ordered: the adult Open Trail, the adult
A large sporting goods store is placing an order for bicycles with its supplier. Four models can be ordered: the adult Open Trail, the adult Cityscape, the girl's Sea (Links to an external site.) Sprite, and the boy's Trail Blazer. It is assumed that every bike ordered will be sold, and their profits, respectively, are 30, 25, 22, and 20. The LP model should maximize profit. There are several conditions that the store (Links to an external site.) needs to worry about. One of these is space to hold the inventory. An adults bike needs two feet, but a child's bike needs only one foot. The store (Links to an external site.) has 500 feet of space. There are 1200 hours of assembly time available. The child's bike needs 4 hours of assembly time; the Open Trail needs 5 hours and the Cityscape needs 6 hours. The store (Links to an external site.) would like to place an order (Links to an external site.) for at least 275 bikes.
A subcontractor is willing to provide a fixed lumpsum of 150 assembly time hours for $950. What should Cityscape do?
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