Answer:
The weekly profit when ordering the optimal amounts is $42,000
Step-by-step explanation:
Cost of one double bed = $500, storage space of one double bed = 100 cubic feet
Cost of one twin bed = $300, storage space of one twin bed = 90 cubic feet
Capital for the week = $75,000
Storage capacity of warehouse = 18,000 cubic feet
Profit for each double bed = $300
Profit for each twin bed = $150
Since the capital for the week is $75,000 and the storage capacity of the warehouse is 18,000 cubic feet, the optimal amounts the operations manager can order is 90 double bed and 100 twin bed
Cost of ordering 90 double bed = 90 × $500 = $45,000
Storage space = 90 × 100 cubic feet = 9000 cubic feet
Cost of ordering 100 twin bed = 100 × $300 = $30,000
Storage space = 100 × 90 cubic feet = 9,000 cubic feet
Total cost = $45,000 + $30,000 = $75,000
Total storage space = 9,000 cubic feet + 9,000 cubic feet = 18,000
Therefore, weekly profit = (90 ×$300) + (100 × $150) = ($27,000 + $15,000) = $42,000
