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An ice cream company must decide how much money to allocate for advertising both their new flavor of ice cream and a traditional flavor over
An ice cream company must decide how much money to allocate for advertising both their new flavor of ice cream and a traditional flavor over the coming year The advertising budget is $17,000,000. Because the company wants to push its new flavor, at least one-half of the advertising budget is to be devoted to the new flavor advertising. However, at least $3,400,000 Is to be spent on its traditional flavor. The company estimates that each dollar spent on the traditional flavor, will translate into 50 pints sold, whereas, because of the harder toll needed for new products, each dollar spent on the new flavor will translate into 100 pints cold. To attract new customers, the company has lowered its profit margin on the new flavor to 2 cents per pint as compared to 4 cents per plot for the traditional flavor. The company wants to sell at least 750 million pints total. What Is their maximum profit? 0 547.5 million Q $44.5 million 0 $42.5 million O $37.5 million
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