A company sells sets of kitchen knives. A Basic Set consists of 2 utility knives and 1 chef's knife. A Regular Set consists of 2 utility knives, 1chef's knife, and 1 slicer. A Deluxe Set consists of 3 utility knives, 1 chef's knife, and 1 slicer. The profit is $20 on a Basic Set, $50 on a RegularSet, and $70 on a Deluxe Set. The factory has on hand 400 utility knives, 200 chef's knives, and 100 slicers.(a) If all sets will be sold, how many of each type should be made up in order to maximize profit? What is the maximum profit?(b) A consultant for the company notes that more profit is made on a Regular Set than on a Basic Set, yet the result from part (a) recommendsmaking up more Basic Sets than Regular Sets. She is puzzled how this can be the best solution. How would you respond?

B = Number of basic sets to be made R = Number of regular sets to be made D = Number of Deluxe sets…

Answered: A company sells sets of kitchen knives.…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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