Billy's Blues Sells 3 Types of T-Shirts: Astro, Bling, and Curious

question 75

Multiple Choice

Billy's Blues sells 3 types of T-shirts: Astro, Bling, and Curious. Manufacturing Astros requires 2 minutes of machine time and 20 minutes of labor, and costs $10. Brand Bling requires 2.5 minutes of machine time and 30 minutes of labor, and costs $14 to produce. Brand Curious requires 3 minutes of machine time and 45 minutes of labor, and costs $18 to produce. There are 300 machining hours available per week, 3750 labor hours, and he has a budget of $3000. Brand Astro sells for $15, Brand Bling for $18, and Brand Curious for $25.
The LP formulation that maximizes week profit shown below.
MAX 15A +18B + 25 C
s.t.
2A + 2.5B + 3C ≤ 300
20A + 30B + 45C ≤ 3750
10A + 14B + 18C ≤ 3000
The solution from QM for Windows is show below.


-Billy's accountant made an error, and the budget has been reduced from $3000 to $2500. Billy's profit will go down by:

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Banking System

The banking system consists of a network of banks and financial institutions that provide financial services, including managing deposits, lending, and currency exchange.

Federal Reserve Board

The Federal Reserve Board is the governing body of the Federal Reserve System, the central banking system of the United States, responsible for setting national monetary policy.