How many of each model should you order to minimize the costs? Draw a graph to illustrate your answer. Rest of info written below...You are the...

The question makes no practical sense. If the only limitation faced by the manager is the number of ovens sold. it would be best for the manager to buy and sell 100 deluxe model making a total profit of $20,00 @ $200 per oven. There is no point in restricting the profit to $8,000.

However, as given in the question we will assume that the manager has mad a profit of $8,000 on sale of total of 100 ovens, and we have to find out the number of ovens of each type.

Given:

Profit on deluxe model = $200 per oven

Profit on basic model = $50 per oven

Total profit made = $8,000

Total number of ovens sold  = 100

Let us say the number of deluxe model sold is 'x',

Then:

Number of basic model sold = 100 - x

Then total profit on both the models sold is given by the formula:

x*200 + (100 - x)*50 = 200x + 5000 - 50x = 150x + 5000

But we know total profit is 8000, therefore:

150x + 5000 = 8000

rearranging the terms in the above equation we get:

150x = 8000 - 5000 = 3000

therefor:

x = 3000/150 = 20

Therefore:

Number of deluxe models sold = 20, and

Number of deluxe models sold = 100 - 20 = 80