Question 4.

Central Beverages is planning of introducing a nutritious beverage Super-sip which will come in three flavours mainly Orange, Mango and Banana. The management Accountant has provided the relevant information about the products below:

Ingredient constituents: percentage make-up per tonne

Emulsifiers Stabilisers Preservatives Caramel

Orange Mango Banana

10 10 20

10 20 10

20 10 10

60 60 60

Input prices per tonne:

Emulsifiers - $150.00

Stabilisers - $60

Preservatives - $120.00

Caramel - $10.00

Maximum available pin tonnes per Month: Emulsifiers 1 200

Stabilisers 2000

Preservatives 2200

Caramel No limit.

The three flavours will be sold in bulk to local hospitals at the prices shown below:

Orange - $83.00

Mango - $81.00

Banana - $81.00

Other variable manufacturing costs for each flavour excluding the above materials, are $11.00 per tonne.

Required:

Formulate a Linear programming model so that the company may maximise contribution and solve it using the Simplex Method. Fully Interpret your Final Tableau.