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Mallory Furniture Buys Two Products for Resale: Big Shelves (B)

Question 55

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Mallory Furniture buys two products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 100 cubic feet of storage space, and each medium shelf costs $300 and requires 90 cubic feet of storage space. The company has $75,000 to invest in shelves this week, and the warehouse has 18,000 cubic feet available for storage. Profit for each big shelf is $300 and for each medium shelf is $150. Graphically solve this problem and answer the following questions.
-If Mallory Furniture is able to increase the profit per medium shelf to $200, would the company purchase medium shelves? If so, what would be the new product mix and the total profit?

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Yes. Big =...

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