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Amerchant plans to sell two models of computers at costs of $260 and $410, respectively. The $260 model has a profit of $55; the $410
Amerchant plans to sell two models of computers at costs of $260 and $410, respectively. The $260 model has a profit of $55; the $410 model has a profit of $75. The merchant estimates total monthly demand will not exceed 250 units. Find the volume of each model the merchant has to place in inventory to maximize profits. Assume all inventory is sold at the given prices. The merchant has only $90,000 for inventory. I = low cost; h = high cost Max: volume L * $55+ Volume H * 75; S.T.: L+H less than or equal to 250 units 1 unit L =$260 cost 1 Unit H = $410 cost L * $260 +H* 410 less than equal to $90,000 X, Y represent Volume of L and H, respectively. X Y Dummy Max
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