A Warehouse Stocks Five Different Products,A,B,C,and D Each Product Must Have at Least 10,000 Ft²,and No Single

question 25

Essay

A warehouse stocks five different products,A,B,C,and D.The warehouse has a total of 100,000 square feet of floor space available to accommodate all the products that it inventories.The monthly profit per square foot for each product is as follows:
$$\begin{array}{l}\underline{\text { Product }} \quad\underline{ \text { Profit per square foot }}\\\begin{array} { l l } \mathrm { A } && &&\$ 4.50 \\\mathrm {~B} &&&& \$ 3.00 \\\mathrm { C } && &&\$ 2.75 \\\mathrm { D } &&&& \$ 3.75\end{array}\end{array}$$
Each product must have at least 10,000 ft²,and no single product can have more than 25% of the total warehouse space.The warehouse manager wants to know the floor space that should be allocated to each product to maximize profit.

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Definitions:

Released

In a financial context, it typically refers to the issuance or availability of funds, securities, or other financial instruments to the market or the public.

Year 1

The initial or first year in a given time frame or series, often used as a base year for comparison in financial and performance analysis.

Absorption Costing

An accounting method that includes all direct costs and allocated overhead costs (both fixed and variable) in the cost of a unit of product.

Unit Product Cost

The total cost associated with producing one unit of product, including direct materials, labor, and overhead.