Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The BC Apricot Sweet company purchases apricot from local growers and makes dried apricots and apricot jam. It costs $4 to produce a bag of

The BC Apricot Sweet company purchases apricot from local growers and makes dried apricots and apricot jam. It costs $4 to produce a bag of dried apricots and $3 to produce a jar of apricot jam. Dried apricots bag sells for $10 per bag and apricot jam sells for $8 per jar.

The company has a policy that at least 25% but not more than 55% of its total production must be apricot jam.

The company wants to meet but not exceed the demand for each product. The marketing manager estimates that the demand for dried apricots is a maximum of 4,000 bags, plus an additional 2 bags for each $1 spent on advertising dried apricots. The maximum demand for apricot jam is estimated to be 3,000 jars, plus an additional 3 jars for every $1 spent to promote apricot jam.

The BC Apricot Sweet wants to know how many units of each to produce and how much advertising to spend on each to maximize net profit.

Formulate algebraically the linear programming model for this problem. Define the decision variables, objective function, and constraints. DO NOT SOLVE.

Hint: the number of decision variables for this problem is four.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Elementary Statistics

Authors: Mario F. Triola

12th Edition

9780321836960

Students also viewed these Economics questions