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Mr. Raman, a local travel agent is planning a charter trip to a famous sea resort. The eight-day seven-night package includes the round-trip fare, surface

Mr. Raman, a local travel agent is planning a charter trip to a famous sea resort. The eight-day seven-night package includes the round-trip fare, surface transportation, boarding and lodging and selected tour options. The charter trip is restricted to 200 persons and past experience indicates that there will not be any problem in arranging 200 passangers. The problem faced by the travel agent is to determine the number of Deluxe Standard and Economy tour packages to offer for this charter. In all three of these plans, each differ in terms of their seating and service for the flight, quality of accommodation, meal plans and tour options. The following table summarizes the estimated prices of the three packages and the corresponding expenses of the travel agent. The travel agent has hired an aircraft for a flat fee of2,00,000 for the entire trip. The per person price and costs for the three packages are as follows:

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Tour Plan

Price ()

Hotel Costs ()

Meals and Other Expenses ()

Deluxe

10,000

3,000

4,750

Standard

7,000

2,200

2,500

Economy

6,500

1,900

2,200

In planning the trip, the following considerations have come up that need to be taken into account:

At least 10 per cent of the packages must be of the deluxe type.

At least 35 per cent but not more than 70 per cent must be of the standard type.

At least 30 per cent must be of the economy type.

The maximum number of deluxe packages available in any aircraft is restricted to 60.

The hotel desires that at least 120 of the tourists should be on the deluxe standard packages together.

Mr. Raman wishes to determine the number of packages to offer in each type of trip so as to maximize the total profit.



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