How many of each kind of bike should be ordered, and what will the profit be?
A large sporting goods store is placing an order for bicycles with its supplier. Four models can be ordered: the adult Open Trail, the adult Cityscape, the girl's Sea Sprite, and the boy's Trail Blazer. It is assumed that every bike ordered will be sold, and their profits, respectively, are 30, 25, 22, and 20. The LP model should maximize profit. The store needs to worry about several conditions. One of these is space to hold the inventory. An adult's bike needs two feet, but a child's bike needs only one foot. The store has 500 feet of space. There are 1200 hours of assembly time available. The child's bikes need 4 hours of assembly time, the Open Trail needs 5 hours, and the Cityscape needs 6 hours. The store would like to place an order for at least 275 bikes.
Order 100 Open Trails, 0 Cityscapes, 175 Sea Sprites, and 0 Trail Blazers. Profit will be 6850.
You might also like to view...
According to FASB ASC 606, which of the following is not part of the five-step approach for revenue recognition?
A. Identify the contract(s) with a customer. B. Determine whether the buyer will take a discount. C. Determine the transaction price. D. Identify the performance obligations in the contract.
The present value of a future amount depends on two variables: the interest rate and the number of periods
Indicate whether the statement is true or false
Permanent funds can be either a governmental fund or a fiduciary fund where only income on donated assets may be spent.
Answer the following statement true (T) or false (F)
As the number of facilities in a supply chain increases
A) the inventory and resulting inventory costs also increase. B) the inventory and resulting inventory costs decrease. C) the inventory increases and resulting inventory costs decrease. D) the inventory decreases and resulting inventory costs increase.