A manufacturer of cell phones makes a profit of $23 on a deluxe model and $31 on a standard model. The company wishes to produce at least 80 deluxe models and at least 100 standard models per day. To maintain high quality, the daily production should not exceed 240 phones. How many of each type should be produced daily in order to maximize the profit?

Question

Quizplus · Accepted Answer

To maximize profit, the company should produce as many units as possible of the model that generates the highest profit per unit, while also meeting the production constraints. The standard model yields a higher profit ($31) than the deluxe model ($23). Given the constraints, producing 160 standard models and 80 deluxe models daily satisfies the minimum production requirements (at least 100 standard and at least 80 deluxe), does not exceed the maximum daily production limit of 240 phones, and maximizes profit by prioritizing the production of the more profitable standard model.

A Manufacturer of Cell Phones Makes a Profit of $23