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The BC Apricot Sweet company purchases apricot from local growers and makes dried apricots and apricot jam. It costs $4 to produce a bag of dried apricots and $3 to produce a jar of apricot jam. Dried apricots bag sells for $10 per bag and apricot jam sells for $8 per jar.
The company has a policy that at least 25% but not more than 55% of its total production must be apricot jam.
The company wants to meet but not exceed the demand for each product. The marketing manager estimates that the demand for dried apricots is a maximum of 4,000 bags, plus an additional 2 bags for each $1 spent on advertising dried apricots. The maximum demand for apricot jam is estimated to be 3,000 jars, plus an additional 3 jars for every $1 spent to promote apricot jam.
The BC Apricot Sweet wants to know how many units of each to produce and how much advertising to spend on each to maximize net profit.
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