Question: What is the economic benefit of increasing the bakery capacity for decorating items by 1 hour per week?
A local bakery produces two popular items weekly: chocolate cakes and apple pies. The profit for a chocolate cake is $30, and an apple pie is $20. Each product requires two types of labor: baking and decorating. The chocolate cake needs 2 hours of decorating and 1 hour of baking, while an apple pie takes 1 hour for baking and 1 hour for decorating. The bakery has 1000 hours weekly for decorating and 800 hours for baking. Due to market demand constraints, the bakery should not produce more than 400 chocolate cakes per week. Hence, the bakery needs to know the optimal number of chocolate cakes and apple pies to maximize its total profit.