Answer to Question #142739 in Microeconomics for fredrick

Question

CARO Departmental stores sends sales reps to call on three kind of customers: Retail, Industrial and Professional. Sales revenue of $8,000 results from calling retail customer, $14,000 from calling Industrial customer and $20,000 from calling Professional customer. Each quarter a total of 3200hrs of sales reps time is available for calling on customer and $10,000 available on travelling expenses. Six hours of travel and selling are required to call on retail customer with $10 sales rep traveling expenses; 11hours for Industrial customer with $14 sales rep traveling expenses; and 25 hours for Professional customer with $25 sales rep traveling expenses. What is optimal customer mix for each quarter?

Answer 1

Using excel to solve the linear programming problem

The optimal mix of customers is made up of 526 retail clients and 4 industrial clients.