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Gamma Galaxy manufactures two models of steppers used for aerobic exercises. Manufacturing each luxury model requires 7 lb of plastic and 6 min of labor. Manufacturing each standard model requires 10 lb of plastic and 3 min of labor. The profit from each luxury model is $40, and from each standard model is $30.
a) If a maximum 710 lb of plastic and 330 labor minutes are to be used every day for the production of steppers, how many steppers of each model should Gamma Galaxy produce each day in order to maximize profit?
b) What is the optimal profit?
c) Determine the production combination if the profit of each luxury model becomes $20 while each standard model gives $35.
Hint: Feel free to use either corner methods or the iso-profit line analysis to answer the questions.
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