Reference no: EM131105772

A baker makes two products; large loaves and small loaves. He can sell up to 280 of the large loaves and up to 400 small round loaves per day. Each large loaf occupies 0.01 m3 of shelf space, each small loaf occupies 0.008 m3 of space, and there is 4 m3 of shelf space available. There are 8 hours available each night for baking and he can produce large loaves at the rate of 40 per hour and small loaves at the rate of 80 per hour. The profit on each large loaf is Sh. 5 and Sh. 3 profit on the small round loaf.

Required:

In order to maximize profits, how many large and small round loaves should he produce?