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Small local company produces two types of popular drinks with original citrus and apple flavors. The expected demand for two flavors for the next
Small local company produces two types of popular drinks with original citrus and apple flavors. The expected demand for two flavors for the next 5 years (in number of cans) is given in the table. The company can buy two or three machines to package them. Each machine cost $85,000 and can package 90,000 drinks a year. Each machine can be used to package the both flavors, and time and expenses to switch from one flavor to another are so small they can be neglected. The expected profits per can is given and they are different for different flavors. Find out how many machines it makes sense to buy to maximize profit by filling with formulas (submissioins without formulas will not be graded) the highlighted cells in this worksheet. Rename the worksheet by your last name. Years Citrus Apple Total 1 80,000 100,000 120,000 60,000 80,000 100,000 one machine cost one machine productivity (in cans per year) 2 machines profit 3 machines profit 130,000 140,000 100,000 100,000 85,000 90,000 total Profit (per can) $ 0.80 1.00 net profit-2 machines net profit-3 machines Calculate total net profits over 5 years if you buy 2 machines and if you buy 3 machines filling by formulas highlighted cells. How many machines it makes sense to buy to maximize profit (number)
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