John Hoke owns Hoke's Spokes, a bicycle shop. Most of John's bicycle sales are customer orders; however, he also stocks bicycles for walk-incustomers. He stocks three types of bicyclesroad-racing, cross-country, and mountain. A road-racing bike costs $1,200, a cross-country bike costs$1,700, and a mountain bike costs $900. He sells road-racing bikes for $1,800, cross-country bikes for $2,100, and mountain bikes for $1,200. Hehas $12,000 available this month to purchase bikes. Each bike must be assembled; a road-racing bike requires 8 hours to assemble, a crosscountrybike requires 12 hours, and a mountain bike requires 16 hours. He estimates that he and his employees have 120 hours available toassemble bikes. He has enough space in his store to order 20 bikes this month. Based on past sales, John wants to stock at least twice as manymountain bikes as the other two combined because mountain bikes sell better If John were to hire an additional worker for 30 hours at $10 per hour, how much additional profit would he make, if any?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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John Hoke owns Hoke's Spokes, a bicycle shop. Most of John's bicycle sales are customer orders; however, he also stocks bicycles for walk-in
customers. He stocks three types of bicyclesroad-racing, cross-country, and mountain. A road-racing bike costs $1,200, a cross-country bike costs
$1,700, and a mountain bike costs $900. He sells road-racing bikes for $1,800, cross-country bikes for $2,100, and mountain bikes for $1,200. He
has $12,000 available this month to purchase bikes. Each bike must be assembled; a road-racing bike requires 8 hours to assemble, a crosscountry
bike requires 12 hours, and a mountain bike requires 16 hours. He estimates that he and his employees have 120 hours available to
assemble bikes. He has enough space in his store to order 20 bikes this month. Based on past sales, John wants to stock at least twice as many
mountain bikes as the other two combined because mountain bikes sell better If John were to hire an additional worker for 30 hours at $10 per hour, how much additional profit would he make, if any?

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