Essay
Native Customs sells two popular styles of hand-sewn footwear: a sandal and a moccasin.The cost to make a pair of sandals is $18,and the cost to make a pair of moccasins is $24.The demand for these two items is sensitive to the price,and historical data indicate that the monthly demands are given by S = 400 - 10P1 and M = 450 - 15P2 , where S = demand for sandals (in pairs),M = demand for moccasins (in pairs),P1 = price for a pair of sandals,and P2 = price for a pair of moccasins.To remain competitive,Native Customs must limit the price (per pair)to no more than $60 and $75 for its sandals and moccasins,respectively.Formulate this nonlinear programming problem to find the optimal production quantities and prices for sandals and moccasins that maximize total monthly profit.
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Max 22S - 1/10 S 2 ...View Answer
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