Answered step by step
Verified Expert Solution
Question
1 Approved Answer
EL BOOZO, a gin importer, bottles three blends, Beafmonger, Tanqued-Up and Vallantine's, priced at $34,$28.50 and $22.50 a bottle respectively. These blends are produced from
EL BOOZO, a gin importer, bottles three blends, Beafmonger, Tanqued-Up and Vallantine's, priced at $34,$28.50 and $22.50 a bottle respectively. These blends are produced from three gins imported by the company: Type A gin, Type B gin and Type C gin. Although the market for these three gin blends is very large, EL-BOOZO cannot import more than the quantities authorized by import regulations each month. These maximum quantities and the purchase prices of imported gins are given in the table below. The three blends are composed as follows: Beafmonger must contain no less than 60% imported type A gin, no more than 20% imported type C gin (no restriction on imported type B gin in this blend); Tanqued-Up must contain no less than 15% imported gin type A, no more than 60% imported gin type C (no restriction on imported gin type B in this blend); Vallantine's must contain no more than 50% imported type C gin (no restrictions on imported type A and B gins in this blend). Formulate the linear program model to help EL BOOZO determine the quantity of each of the blends to be produced and their composition in order to maximize profit contributions. Give the optimum solution and calculate the manufacturing cost per bottle for the optimum solution. Round vour answers to zero decimal places
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started