A grocery store manager must decide how to best present a limited supply of milk and cookies to its customers. Milk can be sold by itself for a profit of $1.50 per gallon. Cookies can likewise be sold at a profit of $2.50 per dozen. To increase appeal to customers, one gallon of milk and a dozen cookies can be packaged together and are then sold for a profit of $3.00 per bundle. The manager has 100 gallons of milk and 150 dozen cookies available each day. The manager has decided to stock at least 75 gallons of milk per day and demand for cookies is always 140 dozen per day. To maximize profits, how much of each product should the manager stock.
Which of the following is the objective function for the grocer's problem?
A) Max P = 1.5M + 2.5C + 3B
B) Min P = 1.5M + 2.5C + 3B
C) Max P = 2.5M + 1.5C + 3B
D) Max P = 2.5M + 3C + 1.5B
E) Min P = 1.5M + 1.5C + 3B

Question

Quizplus · Accepted Answer

The objective is to maximize profit (P), where M represents gallons of milk sold individually, C represents dozens of cookies sold individually, and B represents bundles of milk and cookies. The profits are $1.50 per gallon of milk, $2.50 per dozen cookies, and $3.00 per bundle, making the correct objective function Max P = 1.5M + 2.5C + 3B.

A Grocery Store Manager Must Decide How to Best Present