Question

Suppose you are starting your own company selling chocolate covered strawberries. You decide to sell the milk chocolate covered strawberries for a profit of $2.25 $ 2.25 /box and the white chocolate covered strawberries at $2.50 $ 2.50 /box. Market tests and available resources, however, have given you the following constraints. The combined production level should not exceed 800 800 boxes per month. The demand for the white chocolate is no more than half the demand for milk chocolate strawberries. The production level for white chocolate should be less than or equal to 200 200 boxes.

Answer 1

$1850 per month

Explanation

There are two types of chocolates that can be produced milk chocolate and strawberry covered chocolate. To find the profit we make following equation,

P = $2.25 SC + $2.50 WC

where SC is strawberry chocolate and WC is White milk chocolate.

The maximum production level can be 800 boxes per month and white chocolates can not exceed the 200 boxes per month so we assume making 600 boxes of Strawberry covered chocolates and 200 boxes of white chocolates.

Profit = 2.25 * 600 + 2.50 * 200

Profit = $1850

This is the maximum profit that can be earned after making combination of two types of chocolates.