A flour mill buys its wheat from two different farms, then processes the wheat into flour. Wheat from Farm X costs the mill $8 per bushel, and wheat from Farm Y costs the mill $12 per bushel.
The selling price (in dollars per bushel) for the mill's wheat can be modeled by = where is the demand for the flour milled from Farm X's wheat and is the demand for flour milled from Farm Y's wheat. Assume that and may be zero (so the mill only buys from one of the suppliers) and that the mill can by 1/2 of a bushel.
Then the maximum profit is attained when
= bushels
= bushels
The amount of the flour mill's maximum profit is $ .
The selling price (in dollars per bushel) for the mill's wheat can be modeled by = where is the demand for the flour milled from Farm X's wheat and is the demand for flour milled from Farm Y's wheat. Assume that and may be zero (so the mill only buys from one of the suppliers) and that the mill can by 1/2 of a bushel.
Then the maximum profit is attained when
= bushels
= bushels
The amount of the flour mill's maximum profit is $ .