Suppose you are the manager of a popular cosmetic company. Your top selling brand requires both...

Suppose you are the manager of a popular cosmetic company. Your top selling brand requires both chemicals and labor. Two production processes are available: Process 1 transforms 1 unit of labor and 2 units of chemicals into 3 oz of perfume. Process 2 transforms 2 units of labor and 3 units of chemicals into 5 oz of perfume. It costs your company $3 to purchase a unit of labor and $2 to purchase a unit of chemicals. Each year, up to 20,000 units of labor and 35,000 units of chemicals can be purchased. In the absence of advertising, you believe your company can sell 1,000 oz of perfume. To stimulate demand for your perfume, you can hire a model. The model is paid $100/hour. Each hour the model works for your company is estimated to increase the demand for the perfume by 200 oz. Each ounce of the perfume sells for $5. Formulate a mathematical model that, when solved, maximizes profits.

Do not present your work in Excel.

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Expert Solution

samet mamat answered 1 year ago

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