The Huntz Company purchases cucumbers and makes two kinds of pickles:
sweet
and dill. The company policy is that at least 30%, but no more than
60%, of the pickles be sweet. The demand for pickles is
SWEET: | 5000 jars + additional 3 jars for each $1 spent on advertising |
DILL: | 4000 jars + additional 5 jars for each $1 spent on advertising |
Sweet and dill pickles are advertised separately. The production
costs are:
SWEET: | 0.60 $/jar |
DILL: | 0.85 $/jar |
and the selling prices are:
SWEET: | 1.45 $/jar |
DILL: | 1.75 $/jar |
Huntz has $16,000 to spend on producing and advertising pickles.