City Electronics Distributors handles two lines of televisions, the Packard and the Bell. It purchases up to
Question:
City Electronics Distributors handles two lines of televisions, the Packard and the Bell. It purchases up to $57,000 worth of television sets from the manufacturers each month and stores them in a 9,000-cubicfoot warehouse. The Packards come in 36-cubic-foot packing crates, and the Bells come in 30-cubic-foot crates. The Packards cost City Electronics Php200 each and can be sold to a retailer for a Php200 profit, while the Bells cost Php250 each and can be sold for a Php260 profit. City Electronics must stock enough sets to meet its regular customers’ standing orders.
a. If City Electronics has standing orders for 250 sets in addition to orders from other retailers, how many sets should City Electronics order each month to maximize profit?
b. If City Electronics’ standing orders increase to 260 sets, how many sets should City Electronics order each month to maximize profit?
Probability and Statistics for Engineers and Scientists
ISBN: 978-0495107576
3rd edition
Authors: Anthony Hayter