The Costs to a Store Two Models of Global Positioning

Multiple Choice

The costs to a store two models of Global Positioning System (GPS) receivers are $80 and $100.The $80 model yields a profit of $25 and the $100 model yields a profit of $30.Market tests and available resources indicate the following constraints. The merchant estimates that the total monthly demand will not be exceed 200 units.
The merchant does not want to invest more than $18,000 in GPS receiver inventory.
What is the optimal inventory level for each model what is optimal profit?

A) A maximum profit of $4500 occurs when 180 of each model of GPS receiver is sold.
B) A maximum profit of $5000 occurs when 200 of each model of GPS receiver is sold.
C) A maximum profit of $5400 occurs when 180 of each model of GPS receiver is sold.
D) A maximum profit of $6000 occurs when 200 of each model of GPS receiver is sold.
E) A maximum profit of $5500 occurs when 100 of each model of GPS receiver is sold.