27) Apple makes three models of the iPOD (Shuffle, Nano, and Touch). The selling

Question

27) Apple makes three models of the iPOD (Shuffle, Nano, and Touch). The selling prices per unit are $49, $149 and $229, respectively for each model. Apple manufacture these three versions at labor cost per unit of $5, $10 and $12, respectively for each model. Each model has increasing amount of memory (GB). The Shuffle has 2GB, Nano has 16GB and the Touch has 64GB. A GB of memory has an electronic material cost of $2. If Apple only has 30,000 GB of electronic memory material available per month how many of each iPOD model should be produce to maximize the total profit?

Explanation / Answer

Shuffle i POD Cost=$49, Nano I pod cost=$149 and Touch IPOD cost=$229.

Labor Cost for Shuffle=$5, Labor Cost for Nano is=$10 and Labor cost for Touch is =$12 for each of the Mobile manufactured.

Shuffle has=2GB Nano has 16 GB and Touch has 64GB.

1 GB memory has an electronic Material Cost of $2.

If Apple has only 30,000 GB of electronic material in a month.

How many Each IPOD model Should be produced to maximise the cost.

Selling Price is $49/5=$9.8,$149/10=$14.9 and $229/12=$19.08

$9.8+ $14.9+$19.08/2=$21.89

30,000+21.89*100= 300 for each model that is 300 for Shuffle,300 for Nano and 300 for touch in all 900 mobiles have to be manufactured with the 30,000 GB memory.

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