The Appliance Barn has 2400 cubic feet of storage space for refrigerators. Large refrigerators come in 60-cubic-foot packing crates and small refrigerators come in 40-cubic-foot crates. Large refrigerators can be sold for a $250 profit and the smaller ones can be sold for $150 profit. From past experience the Appliance Barn believes that it can sell at most 35 large refrigerators and 45 small refrigerators in a month. How many of each type of refrigerator should be ordered each month to maximize profit and what is the maximum profit?
Let x = No. of large refrigerators and y = No. of small refrigerators
Maximize: Z = 250x + 150y
Subject to: 60x + 40y < =2400
and x,y >=0
Profit is maximum when we sell 35 large refrigerators computers and 7.5 small refrigerators.
Since this is not possible, we need to find the closest integers that will provide the maximum profit and still stay within the boundaries of the constraints.
So, we will get maximum profit when we order 35 large refrigerators and 7 small refrigerators.
And the maximum profit = 250*35 +150*7 = $ 9800
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