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3. (20 marks) Before the COVID-19 pandemic, a beef slaughterhouse in Alberta would operate one shift per day with a 10,000 kg per shift
3. (20 marks) Before the COVID-19 pandemic, a beef slaughterhouse in Alberta would operate one shift per day with a 10,000 kg per shift capacity. Now, because of the need for physical distancing, they can process only 4000 kg per shift, so they are considering operating on two shifts or even three shifts per day. They buy the cattle from nearby farms in Alberta for only $0.80 per kg of animal, but only 40% of each animal is meat, making the effective cost $0.80/0.4 = $2.00 per kg of meat. The supply per day at this price is limited to 20,000 kg of animal, or 8000 kg of meat. However, there is another 5000 kg of animal available per day from further away, but this would cost $1.00 per kg of animal because of the extra costs of shipping.
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