A merchant plans to sell two smart phones of different models named Sams and Leno. The Sams model yields a profit of RM90 and the Leno model yields a profit of RM70. The merchant estimates at least 50 units of Sams model can be placed in a storeroom while Leno; 100 units. The merchant assumes that at least 10 Sams smart phones can be sold each month. The cost for 1 Sams smart phone is RM400, while RM500 for 1 Leno. The merchant has a storeroom that can place only 3500 smart phones at a same time. The merchant can only spend RM 20,000 for both smart phones. Find the number of units of each model that should be stocked in order to maximize profit.
A merchant plans to sell two smart phones of different models named Sams and Leno. The Sams model yields a profit of RM90 and the Leno model yields a profit of RM70. The merchant estimates at least 50 units of Sams model can be placed in a storeroom while Leno; 100 units. The merchant assumes that at least 10 Sams smart phones can be sold each month. The cost for 1 Sams smart phone is RM400, while RM500 for 1 Leno. The merchant has a storeroom that can place only 3500 smart phones at a same time. The merchant can only spend RM 20,000 for both smart phones. Find the number of units of each model that should be stocked in order to maximize profit.
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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Transcribed Image Text:A merchant plans to sell two smart phones of different models named Sams and Leno.
The Sams model yields a profit of RM90 and the Leno model yields a profit of RM70.
The merchant estimates at least 50 units of Sams model can be placed in a storeroom
while Leno; 100 units. The merchant assumes that at least 10 Sams smart phones can be
sold each month. The cost for 1 Sams smart phone is RM400, while RM500 for 1 Leno.
The merchant has a storeroom that can place only 3500 smart phones at a same time. The
merchant can only spend RM 20,000 for both smart phones. Find the number of units of
each model that should be stocked in order to maximize profit.
Storeroom (unit)
Cost (RM)
Sell (unit)
Profit (RM)
Sams
50
400
10
90
Leno
100
500
70
Requirement
3500
20 000
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