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Calculus/Maximum profit

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Expert: - 11/16/2008


Question
A merchant plans to sell two models of compact disc players at costs of $125 and $250. The $125 model yields a profit of $30 per unit and the $250 model yields a profit of $35 per unit. The merchant estimates that the total monthly demand will not exceed 250 units. The merchant does not want to invest more than $35,000 in inventory for these products. Find the number of units of each model that should be stocked in order to maximum profit. What is the maximum profit? Make a table to represent each model.

Answer
Two costs: $125, $250
Profits: $125 -> $30 and $250 -> $35.
Total demand -> won't exceed 250 units.
Maiximum money invested: $35,000.

Total demand will not exceed 250 units.  Is this the production of both units or the production of each one?

I might be missing something, but it looks like, according to what I just stated, that all of the money should be invected in the first product since it has a higher percentage yield.

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Any kind of calculus question you want. I also have answered some questions in Physics (mass, momentum, falling bodies), Chemistry (charge, reactions, symbols, molecules), and Biology.

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