At Taste of Thyme coffee shop a dirty chai latte creates a profit point of $2.83 for a small and $3.36 for a large. In a month, 225 small lattes were sold and 285 large lattes. As a fast growing demand item with fall approaching, the demand is estimated at 400 and 420 per month. The amount of machine time needed to produce the lattes is 5 minutes and 7 minutes each or for a month, 16.47 hours a month for a small and 33.25 hours a month for a large. What is the maximization function for profit?
A) Profit = 400x1 + 420x2
B) Profit = 2.83x1 + 3.36x2
C) Profit = 16.47x1 + 33.25x2
D) Profit = 2.48x1 + 3.06x2

Question

Quizplus · Accepted Answer

The maximization function for profit is determined by the profit per unit for each item. In this case, $2.83 for a small latte (x1) and $3.36 for a large latte (x2).

At Taste of Thyme Coffee Shop a Dirty Chai Latte