Question

A retail store sells two types of shoes, sneakers and sandals. The store owner pays $8 for the sneakers and $14 for the sandals. The sneakers can be sold for $10 and the sandals can be sold for $17. The owner of the store estimates that she won't sell more than 200 shoes each month, and doesn't plan to invest more that $2,000 on inventory of the shoes. How many of each type of shoe should be stocked in order to maximize her total monthly profit?

Answer 1

134 sneakers and 66 sandals

Explanation:

Sneakers= x, sandals= y

Profit rate:

• sneakers: (10-2)/8= 25%
• sandals: (17-14)/14= 21.4%

Sneakers are more profitable, so it should be maximized.

Cost:

8x+14y≤2000

x+y≤200

if we assume the maximum of 200 shoes stocked, then:

x= 200-y

8(200-y)+14y ≤ 2000

1600 - 8y +14y ≤ 2000

6y≤400

y≤66 and x=134 is the best option