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Right-lite LEDs Inc. produces a variety of portable LED lighting products. They would like to offer two new types of LED lights, a lantern and keychain flashlight, but are unsure of how many of each to manufacture. They expect to charge $3.25 per keychain flashlight and $7.75 per lantern flashlight. Each keychain flashlight requires 3 LED bulbs and 1 battery. Each lantern flashlight requires 6 LED bulbs and 4 batteries. Right-lite currently pays $.50 each per LED bulb and $.35 each per battery. They currently have 250 LED bulbs and 100 batteries on hand. Based on competitor’s sales, they expect to be able to sell 30 lanterns and 50 keychain flashlights in the next week.
Determine the number of each type of flashlight Right-lite should manufacture to maximize profits based on current constraints. Provide suggestions on how to further increase profits.
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