solution

A haberdashery produces scarves, ascots, and capes. The haberdashery makes $4 profit for each scarf, $2 for an ascot, and $5 for a cape. In addition, they are able to enjoy some economies of scale if the batch exceeds one scarf, ascot, or cape so they always make at least two consecutive units of each item. For a scarf, the additional profit is 0.8S 2; for an ascot, the profit made by making consecutive items results in an extra 1.4A 2; and for a cape, the bump is 2C 2. There is also a little extra profit due to the synergy of the scarves, ascots, and capes that adds an additional 2SAC. It takes 10 minutes to produce a scarf, 15 minutes to produce an ascot and 30 minutes to produce a cape. There is a total of 50 hours available for labor each week. There must be at least 50 scarves, 100 ascots, and 25 capes produced each week.
Use Solver to determine the optimal product mix for the scenario described in Table 10-8. What is the resulting profit?

a. $521,650

b. $774,250

c. $395,375

d. $267,775