Question: A company makes two types of golf bags, standard and deluxe. The stages of making the golf bag are cutting and dyeing of material, sewing, putting on the finishing touches, and inspection and packaging. The number of hours devoted to each bag and the limiting amount of hours in each area are expressed in the following constraints:

(7/10)S + 1D ≤ 630 Cutting & Dyeing C&D

(1/2)S + (5/6)D ≤ 600 Sewing Sw

1S + (2/3)D ≤ 708 Finishing F

(1/10)S + (1/4)D ≤ 135 Inspection & Packaging I&P

The demand for standard bags as a function of price is S = 2250 – 15Ps and the cost per bag is $70 and the demand for the deluxe bag is D = 1500 – 5Pd and the cost per bag is $150. The object of the company is maximize the total profit across the two types of bags given the product constraints it faces (S and D are the quantities of standard and deluxe bags).

1. how many of each bag type should be made to maximize profit and what is that optimal amount of profit? (Please do not restrict the solution to integers and do report decimal values to 4 decimals.)
2. what is the price of each bag type at the optimal solution?

Price: $2.99

Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document