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Your company produces headbands and wristbands for athletes. Each can be either all cotton or a mix of cotton and 1 0 % spandex. You
Your company produces headbands and wristbands for athletes. Each can be either all cotton or a mix of cotton and spandex. You have promised local retailers to supply a minimum of all cotton headbands, blended headbands, all cotton wristbands, and blended wristbands. Headbands sell for $ each and wristbands sell for $ each, regardless of the resources used to make them. Your fabric supplier has yards of cotton which is $ yard and yards of spandex which is $ yard. A headband requires yards of fabric, and a wristband requires yards of fabric. Your goal is to find the production plan that will maximize your profit. Of the two resources, which ones would you want to acquire more of if you could? What would be the maximum price you would be willing to pay for an additional yard of Cotton, and for an additional yard of Spandex Suppose you can buy extra Cotton at yard and extra Spandex at $yard How many extra yards would you purchase of each resource, and what would be the impact on your total profit?
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