Please show all work - if all work is not shown, i can not rate lifesaver A dist
ID: 2971651 • Letter: P
Question
Please show all work - if all work is not shown, i can not rate lifesaver
A distributer offers a store a special on two models of night stands, the custom and the executive as long as they buy at least 100 units ...- Custom model: if the store buys at least 100 units, it will cost $70 each, which the store will sell for $90 each. Executive model - $80 per unit, which the store will sell for $120 each. The store has 800 square feet of space available. Each custom model requires 4 sqfeet and each executive model requires 5 sq feet. The store manager wants gross sales of at least $10,800.
How many of each type should be ordered so that the total cost will be minimized?
Explanation / Answer
if the store only has 800 sq. feet of space foe items, no matter what you do the store wont make $10,800. the most it could make would be off the executive model; selling for 120 while costing 80, a mark up of 40 dollars. if you have 800 sq. feet and each executive takes up 5 800 divided by 5 is 160. so only 160 units can fit in the store space. 160 times 40 dollar mark up profit margin is $6400 dollars.. that is the MOST you can make with the variables in this problem.. trick question?? what is this, business math 101?
there is no way to make more than 6400 dollars in this problem. no matter what way you choose. 6400 is the maxed out profit for this company in this problem.
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