A merchant plans to sell two models of MP3 players at prices of $225 and $250. The $225 model yields a profit of $30 per unit and the $250 model yields a profit of $31 per unit. The merchant estimates that the total monthly demand will not exceed 280units. The merchant does not want to invest more than $55,776 in inventory for these products. What is the optimal inventory level for each model? What is the optimal profit?
?
A. 231 units of the $225 model49 units of the $250 modelOptimal profit: $8,449
B. 225 units of the $225 model30 units of the $250 modelOptimal profit: $7,680
C. 250 units of the $225 model31 units of the $250 modelOptimal profit: $8,461
D. 275 units of the $225 model30 units of the $250 modelOptimal profit: $9,180
E. 275 units of the $225 model31 units of the $250 modelOptimal profit: $9,211
Answer: A
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