Question

An automotive firm produces three types of cars:a large luxury car,a medium-sized car,and a compact car.The gasoline mileage figures,predicted sales,andprofit figures for each type of car is given in the accompanying

table.Govern-ment regulations state that the average gasoline mileage for the company's entireline of cars should equal or exceed 30 miles per gallon(mpg).For every 1 mpgbelow 30,the company must pay a penalty of $200 per car produced.The firmwishes to maximize its profits and also minimize the mileage amount under27 mpg (since not only must they pay a penalty but they will also receive badpublicity).Develop the baseline model for this problem.CarMileage(mpg)Profit|CarMarketLarge18$600600,000Medium9400800,000Compact36300700,000

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