Which requires chemicals and labor

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Reference no: EM132305092

Candy Kane Cosmetics (CKC) produces Leslie Perfume, which requires chemicals and labor. Two production processes are available. Process 1 transforms 1 unit of labor and 2 units of chemicals into 3 ounces of perfume. Process 2 transforms 2 units of labor and 3 units of chemicals into 5 ounces of perfume. It costs CKC $3 to purchase a unit of labor and $2 to purchase a unit of chemicals. Each year up to 20,000 units of labor and 35,000 units of chemicals can be purchased.

In the absence of advertising, CKC believes it can sell 1000 ounces of perfume. To stimulate demand for Leslie, CKC can hire the lovely model Jenny Nelson. Jenny is paid $100 per hour. Each hour Jenny works for the company is estimated to increase the demand for Leslie Perfume by 200 ounces. Each ounce of Leslie Perfume sells for $5.

Use Solver to determine how CKC can maximize its profit.

Reference no: EM132305092

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