Blue ridge hot tubs makes four kinds of hot tubs

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Reference no: EM132096527

Blue Ridge Hot Tubs makes four kinds of Hot Tubs: (1) Aqua Spa, (2) Hydro Lux, (3) Eco Spa and (4) Ultra Spa. The Selling price, variable cost, pumps, labor hours and feet of tubing required are given below. Aqua Spa, Hydro Lux, Eco Spa, Ultra Spa Selling Price per unit Aqua Spa$500, HydroLux $450, Eco Spa $600, Ultra Spa $1000 Variable cost per unit Aqua Spa$150 Hydrolux $200, Eco Spa $400, Ultra Spa $450. Pumps required per unit Aqua Spa 1, HydroLux 1, Eco Spa 2, Ultra Spa 3 Labor Hours Required Aqua Spa 9, HydroLux 6, Eco Spa 12, Ultra Spa 15 Feet of Tubing Required Aqua Spa 12, HydroLux 16, Eco Spa 20, Ultra Spa 25. Blue Ridge has 1,000 pumps available, 10,000 hours of labor and 20,000 feet of tubing. The manager at Blue Ridge also have $100,000 available for promotion and advertising. He knows that sales on these products depends on advertising and the more advertisement the higher the sales. The Business Analytics division has given him the following information. Tub: Aqua Spa: initial sales = 50, sales increase for every dollar spent = $2.00 Tub: Hydro Lux: initial sales = 60, sales increase for every dollar spent = $3.00 Tub: Eco Spa: initial sales = 10, sales increase for every dollar spent = $10.00 Tub: Ultra Spa: initial sales = 30, sales increase for every dollar spent = $8.00 Formulate as LP, setup and solve the problem in Excel. Please clearly specify your decision variables and define them properly. (Answer should be around 323,610)

Reference no: EM132096527

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