A Merchant Plans to Sell Two Models of MP3 Players

question 26

Multiple Choice

A merchant plans to sell two models of MP3 players at prices of $225 and $250.The $225 model yields a profit of $30 per unit and the $250 model yields a profit of $31 per unit.The merchant estimates that the total monthly demand will not exceed 280units.The merchant does not want to invest more than $55,776 in inventory for these products.What is the optimal inventory level for each model? What is the optimal profit? ​

• A)231 units of the $225 model 49 units of the $250 model
• Optimal profit: $8,449
• B)225 units of the $225 model 30 units of the $250 model
• Optimal profit: $7,680
• C)250 units of the $225 model 31 units of the $250 model
• Optimal profit: $8,461
• D)275 units of the $225 model 30 units of the $250 model
• Optimal profit: $9,180
• E)275 units of the $225 model 31 units of the $250 model
• Optimal profit: $9,211

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