A merchant plans to sell two models of MP3 players at prices of $225 and $250.The $225 model yields a profit of $30 per unit and the $250 model yields a profit of $31 per unit.The merchant estimates that the total monthly demand will not exceed 280units.The merchant does not want to invest more than $55,776 in inventory for these products.What is the optimal inventory level for each model? What is the optimal profit?
A)231 units of the $225 model 49 units of the $250 model
Optimal profit: $8,449
B)225 units of the $225 model 30 units of the $250 model
Optimal profit: $7,680
C)250 units of the $225 model 31 units of the $250 model
Optimal profit: $8,461
D)275 units of the $225 model 30 units of the $250 model
Optimal profit: $9,180
E)275 units of the $225 model 31 units of the $250 model
Optimal profit: $9,211

Question

A merchant plans to sell two models of MP3 players at prices of $225 and $250.The $225 model yields a profit of $30 per unit and the $250 model yields a profit of $31 per unit.The merchant estimates that the total monthly demand will not exceed 280units.The merchant does not want to invest more than $55,776 in inventory for these products.What is the optimal inventory level for each model? What is the optimal profit? ​
A)231 units of the $225 model 49 units of the $250 model
Optimal profit: $8,449
B)225 units of the $225 model 30 units of the $250 model
Optimal profit: $7,680
C)250 units of the $225 model 31 units of the $250 model
Optimal profit: $8,461
D)275 units of the $225 model 30 units of the $250 model
Optimal profit: $9,180
E)275 units of the $225 model 31 units of the $250 model
Optimal profit: $9,211

Quizplus · Accepted Answer

The optimal inventory level is 231 units of the $225 model and 49 units of the $250 model. The optimal profit is $8,449.

A Merchant Plans to Sell Two Models of MP3 Players