Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

customers buy 14 units of regular beer and 20 units of light beer monthly. The brewery decides to produce extra beer, beyond that needed to

customers buy 14 units of regular beer and 20 units of light beer monthly. The brewery decides to produce extra beer, beyond that needed to satisfy the customers. The cost per unit of regular beer is $28,000 and the cost per unit of light beer is $47,000. Every unit of regular beer brings in $200,000 in revenue, while every unit of light beer brings in $400,000 in revenue. the brewery wants at least $12000,000 in revenue. At least 9 additional units of beer can be sold. a) how much of each type of beer should be made so as to minimize total production costs? let y1 represent units of regular beer and y2 represent units of light beer. find the objective function, W, used to minimize production costs, W=y1+y2. The brewery should make units of regular beer and units of light beer so as to minimize total production costs. The Minimum costs is ? b) suppose the minimum revenue is increased to 10%. Use shadow costs to calculate the new total production costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elementary Statisitcs

Authors: Barry Monk

2nd edition

1259345297, 978-0077836351, 77836359, 978-1259295911, 1259295915, 978-1259292484, 1259292487, 978-1259345296

More Books

Students also viewed these Mathematics questions