Question: A furniture dealer trades in two items, tables and chairs. He invests $60,000 in buying tables and chairs. He has a storage capacity for 600 pieces. A table costs him $120 and a chair $40. He can sell a table for a profit of $10 and a chair for a profit of $6. How should he invest his money in order to make maximum profit? A ) 450 tables, 150 chairs B ) 450 tables, 300 chairs C ) 450 tables, 200 chairs D ) 300 tables, 150 chairs Steps to derive 1 Let the number of tables and chairs to be purchased be x and y .2 P = 10x + 6y [Objective function is profit, P, profit for a table is $10 and a chair is $6.]3 The dealer can invest $60,000 we have 120x + 40y ≤ 60000 or 3x + y ≤ 1500 [Cost of table is $120, cost of chair is $40.]4 x + y ≤ 600 [The storage capacity is for 600 pieces.]5 x ≥ 0, y ≥ 0 [x , y are the number of tables and chairs.]6 The feasible region determined by the above constraints is shown.7 From the graph the vertices are (0, 0), (500, 0), (450, 150) and (0, 600)8 At (0, 0), P = 10(0) + 6(0) = 0 [Substitute the values.]9 At (500, 0), P = 10(500) + 6(0) = 5000 [Substitute the values.]10 At (450, 150), P = 10(450) + 6(150) = 5400 [Substitute the values.]11 At (0, 600), P = 10(0) + 6(600) = 3600 [Substitute the values.]12 So, the maximum profit can be obtained by purchasing 450 tables and 150 chairs.Hence the right answer is Option A Click Here To Go Back Few Other Questions - The distance between place A and place B is 61.7 km. 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