Oakey Wines is considering expanding on from the cafe to build a restaurant that will provide an evening experience of a meal, wine and entertainment. The package will be used to showcase new season wines as well as provide a winemaker to explain the wine throughout the night with a set menu. To ensure the evening is affordable to most people, there will be three levels of packages offered: Deluxe, Royal and Luxury. Each package includes a 3-course meal, entertainment for the night and matching wine. The 3 packages costs are shown below:

	Deluxe	Royal	Luxury
Selling Price ($)	65	50	55
Direct material	21	21	21
Direct labour	20	2	2
Variable overhead	6	6	6
Fixed overhead	3	3	3

All packages include entre, main, dessert and wine with the Deluxe and Royal including some time with a winemaker. The time requirements per person are below as well as the available time, all in hours.

Constraints	Deluxe	Royal	Luxury	Available hours
Entre	0.3	0.25	0.25	600
Main	1	1	0.5	1200
Dessert	0.5	0.3	0.25	600
Wine selection and prep	0.5	0.25	0.25	200
Winemaker	1	0.5	0	300

Required:

a) Formulate a linear program to determine the expected mix of meal packages to ensure the maximum profit will be created. Show all supporting calculations and solve using a computer package (eg solver in Excel) to derive the optimum solution. (5 marks)

b) Upon reviewing the constraints, it has been noticed that the majority of direct labour has been incorrectly allocated to the deluxe package. The manager revised these to:

	Deluxe	Royal	Luxury
Selling Price ($)	65	50	55
Direct material	21	21	21
Direct labour	20	15	12
Variable overhead	6	6	6
Fixed overhead	3	3	3

Formulate a second linear program taking into consideration the changes. (5 marks)

c) Discuss the results from both of the Solver solution. What recommendation or changes do you suggest for Oakey Wines? (10 marks)