The Operations Manager of a Mail Order House Purchases Double

question 37

Multiple Choice

The operations manager of a mail order house purchases double (D) and twin (T) beds for resale. Each double bed costs $500 and requires 100 cubic feet of storage space. Each twin bed costs $300 and requires 90 cubic feet of storage space. The manager has $75,000 to invest in beds this week, and her warehouse has 18,000 cubic feet available for storage. Profit for each double bed is $300 and for each twin bed is $150. The manager's goal is to maximize profits.
What is the weekly profit when ordering the optimal amounts?

• A) $0
• B) $30,000
• C) $42,000
• D) $45,000
• E) $54,000

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