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Question -
Rollins Publishing needs to decide what textbooks from the following table to publish.
Text-Book
Demand
Fixed Cost
Variable Cost
Selling Price
Book 1
9,000
$12,000
$19
$40
Book 2
8,000
$21,000
$28
$60
Book 3
5,000
$15,000
$30
$52
Book 4
6,000
$10,000
$20
$34
Book 5
7,000
$18,000
$45
For each book, the maximum demand, fixed cost of publishing, variable cost, and selling price are provided. Rollins has the capacity to publish a total of 20,000 books.
a) Formulate this problem to determine which books should be selected and how many of each should be published to maximize profit.
b) Solve using computer software.
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