Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Romans Food Market, located in Saratoga, New York, carries a variety of specialty foods from around the world. Two of the store's leading products

image text in transcribedimage text in transcribed

Romans Food Market, located in Saratoga, New York, carries a variety of specialty foods from around the world. Two of the store's leading products use the Romans Food Market name: Romans Regular Coffee and Romans Decaf Coffee. These coffees are blends of Brazilian Natural and Colombian Mild coffee beans, which are purchased from a distributor located in New York City. Because Romans purchases large quantities, the coffee beans may be purchased on an as-needed basis for a price 10% higher than the market price the distributor pays for the beans. The current market price is $0.47 per pound for Brazilian Natural and $0.62 per pound for Colombian Mild. The compositions of each coffee blend are as follows. Bean Blend Regular DeCaf Brazilian Natural 75% 40% Colombian Mild 25% 60% Romans sells the Regular blend for $3.60 per pound and the Decaf blend for $4.40 per pound. Romans would like to place an order for the Brazilian and Colombian coffee beans that will enable the production of 1,100 pounds of Romans Regular coffee and 600 pounds of Romans Decaf coffee. The production cost is $0.80 per pound for the Regular blend. Because of the extra steps required to produce Decaf, the production cost for the Decaf blend is $1.05 per pound. Packaging costs for both products are $0.25 per pound. (a) Formulate a linear programming model that can be used to determine the pounds of Brazilian Natural and Colombian Mid that will maximize the total contribution to profit. (Let BR pounds of Brazilian beans purchased to produce Regular, 80 pounds of Brazilian beans purchased to produce DeCaf, CR pounds of Colombian beans purchased to produce Regular, and CD pounds of Colombian beans purchased to produce DeCaf.) Max 2.0338R+2.5838D+1.868CR+2418CD Regular constraint Decaf % constraint Pounds of Regular Pounds of DeCaf 0.258R-0.75CR-0 0.60BD-0.40CD-0 BR+CR1100 Enter an equation, BD+CD6001 Enter an equation x

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Accounting An Integrated Approach

Authors: Penne Ainsworth, Dan Deines

6th edition

78136601, 978-0078136603

More Books

Students also viewed these Accounting questions

Question

Why should policymakers think about incentives?

Answered: 1 week ago