Mallory Furniture Buys Two Products for Resale: Big Shelves (B)

question 2

Essay

Mallory Furniture buys two products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 100 cubic feet of storage space, and each medium shelf costs $300 and requires 90 cubic feet of storage space. The company has $75,000 to invest in shelves this week, and the warehouse has 18,000 cubic feet available for storage. Profit for each big shelf is $300 and for each medium shelf is $150. Graphically solve this problem and answer the following questions.
-If Mallory Furniture is able to increase the profit per medium shelf to $200, would the company purchase medium shelves? If so, what would be the new product mix and the total profit?

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Definitions:

Positive Reinforcement

A behavior modification strategy that involves presenting a rewarding stimulus to increase the probability of a particular behavior.

Negative Reinforcements

A behavioral principle where the removal of an unfavorable event or outcome after the display of a behavior increases the likelihood of that behavior being repeated in the future.

Positive Reinforcements

a process in behavior analysis where the addition of a stimulus following a behavior increases the likelihood of that behavior happening again.

Punishment

A process that decreases the likelihood of a behavior being repeated, often through unpleasant consequences following that behavior.