Summertime Tees sells two very popular styles of embroidered shirts in southern Florida: a tank top and
Question:
Summertime Tees sells two very popular styles of embroidered shirts in southern Florida: a tank top and a regular T-shirt. The cost of the tank top is $6, and the cost of the T-shirt is $8. The demand for these is sensitive to the price, and historical data indicate that the weekly demands are given by
X1 = 500 – 12P1
X2 = 400 – 15P2
Where
X1 = demand for tank top
P1 = price for tank top
X1 = demand for regular T-shirt
P2 = price for regular T-shirt
(a) Develop an equation for the total profit.
(b) The following nonlinear program. Use the profit function developed in part (a).
Maximize profit
Subject to X1 = 500 - 12P1
X2 = 400 - 15P2
P1 ≤ 20
P2 ≤ 25
X1, P1, X2, P2 ≥ 0
Step by Step Answer:
Quantitative Analysis For Management
ISBN: 162
11th Edition
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna