Question
Al-Marai Inc. produces various Traditional food products and sells them to Al-Ameen Group, a chain of grocery stores located in Bahrain and Saudi Arabia. Al-Marai,
Al-Marai Inc. produces various Traditional food products and sells them to Al-Ameen Group, a chain of grocery stores located in Bahrain and Saudi Arabia. Al-Marai, Inc. makes two pickle (Ajaar) products: Indian style pickle and Bahraini style pickle in their two main production units AL-Hidd Production Units - with capacity of 800 units and Salmabad Production Unit with capacity of 1200 units. Essentially, the two products have different blends of whole tomatoes, mango nectar, and whole lemons. The Bahraini style pickle is a blend of 60% whole tomatoes, 40% mango nectar, and 21% whole lemon. The Indian style pickle, which has a thicker and chunkier consistency, consists of 82% whole tomatoes, 65% mango nectar, and 12% whole lemon. Each jar of pickle produces weighs 32 ounces. For the current production period Al-Marai Inc. can purchase up to 550 pounds of whole tomatoes, 300 pounds of mango nectar, and 145 pounds of whole lemon. The price per pound for these ingredients is SAR9.5, SAR 12.5, and SAR 4.0 respectively. The cost of the spices and the other ingredients is approximately SAR 3.5 per jar. Al-Marai buys empty glass jars for SAR 0.25, and labeling and filling costs are estimated to be SAR 0.5 for each jar of pickle produced. Al-Marai contract with Al-Ameen group results in sales revenue of SAR 12.5 for each jar of Indian style pickle and SAR 14.5 for each jar of Bahraini style pickle. To maximize the profit how many of the jars of Indian style pickle and Bahraini style pickle should be produced.
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