Problem 1 (4 points):

Hyattsville Craft Brewers produces two types of beer - a stout and an IPA. These are sold to local pubs. The stout sells for $260 per barrel, and ale sells for $170 per barrel. Producing a barrel of beer requires 65 pounds of malt and 6 pounds of hops. Producing a barrel of ale requires 45 pounds of malt and 2 pounds of hops. The brewery has 600 pounds of malt and 40 pounds of hops. The capacity is somewhat limited, and they can only produce 10 barrels of beer. The brewery is interested in maximizing revenues.

1. What are the decision variables?
2. What is the objective function?
3. What are the constraints?

How much of each type of beer should the brewery produce? What are its optimal revenues? (Attach a clearly labeled Solver model as Exhibit A).