How many of each type of car should CarPro sell to maximize profits Refer to

How many of each type of car should carpro sell to

This preview shows page 9 - 11 out of 11 pages.

ordering cars. How many of each type of car should CarPro sell to maximize profits? Refer to the CarPro problem. At the optimal solution, how many trucks should be sold to maximize profits? a . 2 0 b . 1 4 c . 1 8 d . 1 0 1 points QUESTION 9 CarPro is an automobile dealer selling only new cars. CarPro sells three types of vehicles: sedans, SUVs and trucks. CarPro places orders to the car manufacturers only when customers have decided to purchase. The ordering cost (per unit) of sedan, SUV and truck are $18,000, $20,500 and $19,000, respectively. The sales price (per unit) of sedan, SUV and truck are $20,000, $23,000, and $21,500, respectively. The base salary for a sales person is $100/day. In addition, a sales person gets a commission of 5% on the selling price of cars he sells. Each sales person works 8 hours a day. A sales
Image of page 9
person spends two hours selling a sedan, three hours selling an SUV, and two-and-a- half hours selling a truck. CarPro can spend a maximum of $300,000 per day on ordering cars. How many of each type of car should CarPro sell to maximize profits? Refer to the CarPro problem. At the optimal solution, the total ordering cost for all cars is: a . $ 278,800 b . $ 276,908 c . $ 286,500 d . $ 289,700 1 points QUESTION 10 The Orange Inc. is an American technology company that sells two products: laptops and printers. In this quarter, they have one million dollars available to order products and then sell them to the consumers. They have two manufacturers: one located in USA and the other in China. Orange Inc. can order both products from these two manufacturers. Production costs at these two locations are different, and given in the table below. The US government requires that at least 40% of each product that Orange orders should come from the USA manufacturer. That is, if Orange company orders 40 laptops and 100 printers as whole, then at least 16 laptops and at least 40 printers should be ordered from the USA manufacturer. The combined total of the number of laptops ordered from USA and China together should be equal to or greater than 1000. Similarly, the combined total of the number of printers ordered from USA and China together should be
Image of page 10
equal to or greater than 1000. How should the company place its orders, if it wants to maximize total profit? Partial production, orders, and sales, of laptops and printers are not allowed. Refer to The Orange Inc. problem. At the optimal solution, the total profit is: a . $ 657,500 b . $ 722,282 c . $ 964,500 d . $ 789,800 1 points SAVE AND SUBMIT Click Save and Submit to save and submit. Click Save All Answers to save all answers. Per Laptop USA China Labor Costs $75.00 $35.00 Material Costs $350.00 $350.00 Shipping Costs $9.00 $40.00 Selling Price $750.00
Image of page 11

You've reached the end of your free preview.

Want to read all 11 pages?

  • Fall '19
  • Sales, Automobile, optimal solution, Orange Inc.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture