Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Canadian Superior Party Mix Company (CSPM) packages and sells three different 450 gram cans of mixed nuts. The three blends are called Plain Nuts,

The Canadian Superior Party Mix Company (CSPM) packages and sells three different 450 gram cans of mixed nuts. The three blends are called Plain Nuts, Mixed Nuts, and Premium Mix. A can of Plain Nuts sells for $2.25, while mixed Nuts sell for $3.37, and a Premium Mix sells for $6.49 per can. A Can of Plain Nuts consists of 360 grams of peanuts and 90 grams of cashew nuts. A can of Mixed Nuts consists of 225 grams of peanuts, 135 grams of cashew nuts, 45 grams of almonds, and 45 grams of walnuts. A can of Premium Mix is made up of 135 grams of cashew nuts, 135 grams of almonds, and 180 grams of walnuts. Past demand indicates that customers purchase at least twice as many cans of Plain Nuts as Premium Mix. There is a standing order for 100 cans of Premium Mix. CSPM has on hand 225 kilograms of peanuts, 125 kilograms of cashew nuts, 45 kilograms of almonds, and 36 kilograms of walnuts. 

a. How many cans of the three blends should CSPM mix in order to maximize total revenue? 

b. What is the maximum revenue?

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_2

Step: 3

blur-text-image_3

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

Managerial Decision Modeling With Spreadsheets

Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair

3rd Edition

136115837, 978-0136115830

More Books

Students also viewed these General Management questions