Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alexa is the manager of a business in Chicago which makes air conditioner. The business makes 1000 air conditioners a day in batches of 100,

  1. Alexa is the manager of a business in Chicago which makes air conditioner. The business makes 1000 air conditioners a day in batches of 100, and Alexa has determined that the revenue function and cost function for air conditioners each day are: R(p) = -2p2 + 48p C(p) = 6p + 200

where p is a batch of 100 air conditioners, and R(p) and C(p) are in hundred dollars.

Due to the coronavirus, the business cam convert the factory to production of masks, and for masks, the revenue and cost function each day will be:

R(f) = 52f C(f) =14f + 150

where f is a batch of 100 masks, and R(f) and C(f) are in hundred dollars.

Due supply of materials, the business will only be able to make air conditioners and masks in batches of 100, and the total capacity will still be 1000 total products/day.

  1. To maximize the total profit, how many batches of air conditioners and how many batches of masks should the business manufacture?
  1. What is the maximum daily profit?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions

Question

84 Job analysis and job description methods.

Answered: 1 week ago