Candy kane cosmetics ckc produces leslieperfume which, Ask an Expert

Management Studies

Candy Kane Cosmetics (CKC) produces LesliePerfume, which requires chemicals and labor. Two production processes are available. Process 1 transforms one unit of labor and two units of chemicals into three ounces of perfume. Process two transforms two units of labor and three units of chemicals into five ounces of perfume. It costs CKC $3 to purchase a unit of labor and $2 to purchase a unit of chemicals. Each year up to 20,000 units of labor and 35,000 units of chemicals can be purchased. In theabsence of advertising, CKC believes it can sell 1000 ounces of perfume. To stimulate demand for Leslie, CKC can hire the beautiful model Jenny Nelson. Jenny is paid $100 per hour. Each hour Jenny works for the company is estimated to increase the demand for Leslie Perfume by 200 ounces. Each ounce of Leslie Perfume sells for $5. Determine how CKC can maximize its profit.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9370802

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