The logistics/operations manager of a mail order house purchases two products for resale: king beds (K)and queen beds (Q). Each king bed costs $500 and requires 100 cubic feet of storage space, and each queen bed costs $300 and requires 90 cubic feet of storage space. The manager has $75,000 to invest in beds this week, and her warehouse has 18,000 cubic feet available for storage. Profit for each king bed is $300 and for each queen bed is $150.
What is the maximum profit?
A)$0
B)$30,000
C)$42,000
D)$45,000
E)$54,000

Question

Quizplus · Accepted Answer

To maximize profit, the manager should purchase as many king beds as possible, given the constraints. The cost constraint is $75,000, and the storage constraint is 18,000 cubic feet. By solving the linear programming problem, the optimal solution is to purchase 90 king beds and 0 queen beds, resulting in a maximum profit of $45,000.

The Logistics/operations Manager of a Mail Order House Purchases Two