A stationery company makes two types of notebooks: a deluxe notebook with subject dividers, which sells for $4.00, and a regular notebook, which sells for $3.00. The production cost is $3.20 for each deluxe notebook and $2.60 for each regular notebook. The company has the facilities to manufacture between 2000 and 3000 deluxe and between 3000 and 6000 regular notebooks, but not more than 7000 altogether. How many notebooks of each type should be manufactured to maximize the difference between the selling prices and the production costs?
A stationery company makes two types of notebooks: a deluxe notebook with subject dividers, which sells for $4.00, and a regular notebook, which sells for $3.00. The production cost is $3.20 for each deluxe notebook and $2.60 for each regular notebook. The company has the facilities to manufacture between 2000 and 3000 deluxe and between 3000 and 6000 regular notebooks, but not more than 7000 altogether. How many notebooks of each type should be manufactured to maximize the difference between the selling prices and the production costs?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A stationery company makes two types of notebooks: a deluxe notebook with subject dividers, which sells for $4.00, and a regular notebook, which sells for $3.00. The production cost is $3.20 for each deluxe notebook and $2.60 for each regular notebook. The company has the facilities to manufacture between 2000 and 3000 deluxe and between 3000 and 6000 regular notebooks, but not more than 7000 altogether. How many notebooks of each type should be manufactured to maximize the difference between the selling prices and the production costs?
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