Question

A RSS Clothing manufacturer makes two types of jogging pants, design A and design B. The design A jogging pants sells to the retail stores for 2,500each and the design B jogging pants for 2,100. The cost for manufacturing each design A is 1,750 and the cost of each design B is 1,200. If the manufacturer makes no more than 120 jogging a week and budget no more than 150,000 per week, how many of each type should be made to maximize profit?

Answer 1

120 of design B

Explanation:

The profit per dollar cost for design A is (2500/1750 -1) ≈ 0.43. For design B, it is (2100/1200 -1) ≈ 0.75. Design B is more profitable and less expensive to make, so its production should be maximized.

For maximum profit, 120 jogging pants of design B should be made each week.

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The budget of 150,000 would allow 150,000/1,200 = 125 pants of design B to be made. The production limit of 120 pants does not use the entire budget.