Question
Howies vendors now provide him with improved equipment such that only six hours of labor are required for the Hydro-Lux. The Aqua-Spa still requires nine
Howies vendors now provide him with improved equipment such that only six hours of labor are required for the Hydro-Lux. The Aqua-Spa still requires nine hours of labor. However, the vendors have changed their discounting structure so that he receives incremental discounts, rather than all-units discounts. For example, Blue Ridge Hot Tubs makes $350 in profit for the first 75 Aqua-Spas that it sells, and $375 on the next 75. A parallel scheme applies to the Hydro-Lux model. How many of each model should Howie produce if he wants to maximize his profits during the next production cycle? Is his profit higher or lower than before? Why? ***My professor said the correct answer is $65,825. Can you please show the excel and solver for this!
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