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Eden Fruits Vineyard produces three kinds of drinks, Applegrapes, Gingergrapes, and Orangegrapes. The company has 1 7 tons of grapes available to produce drinks this

Eden Fruits Vineyard produces three kinds of drinks, Applegrapes, Gingergrapes, and Orangegrapes. The company has
17
tons of grapes available to produce drinks this Christmas season. A barrel of Applegrapes requires
0.21
tons of grapes, a barrel of Gingergrapes requires
0.24
tons, and a barrel of Orangegrapes requires
0.18
tons. The vineyard has enough storage space in its aging room to store
80
barrels produced. The vineyard has
2
,
500
hours of production capacity, and it requires
12
hours to produce a barrel of Applegrapes,
14.5
hours to produce a barrel of Gingergrapes, and
16
hours to produce a barrel of Orangegrapes. From past sales the vineyard knows that demand for the Orangegrapes will be no more than half of the sales of the other two wines combined. The profit for a cask of Blanc is GH
7
,
500
,
the profit for a cask of Red is GH
8
,
200
,
and the profit for a cask of Blush is GH
10
,
500.
USE YOUR SENSITIVITY REPORT TO ANSWER ALL THE QUESTIONS BELOW. LEAVE YOUR ANSWERS TO
2
DECIMAL PLACE WHERE REQUIRED.
1.
What is the optimal mix for Eden Fruits production? Blank
1.
Fill in the blank, read surrounding text.
2.
Which drink will you recommend as profitable?
3.
What is the profit contribution from your recommendation for Q
2.
?
4.
What is the maximum profit contribution from the optimal mix?
.
5.
Compute the minimum and maximum profit required for Gingergrapes. Blank
7.
Fill in the blank, read surrounding text.
6.
By how much profit will be contributed for increasing tons by
0.25
in the Vineyard.
7.
What is the shadow price for given that demand for the Orangegrapes will be no more than half of the sales of the other two wines combined?
8.
What is the implication if Eden Fruits decide to increase the unit sales for Gingergrapes by
650
?
.
9.
What is the shadow price difference between Barrels and Tons?
.
10.
By how much should Demand condition be reduced to
?

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