Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The seasonal yield of olives in a Piraeus, Greece, vineyard is greatly influenced by a process of branch pruning. If olive trees are pruned every

The seasonal yield of olives in a Piraeus, Greece, vineyard is greatly influenced by a process of branch pruning. If olive trees are pruned every two weeks, output is increased. The pruning process, however, requires considerably more labor than permitting the olives to grow on their own and results in a smaller size olive. It also permits olive trees to be spaced closer together. The yield of 1 barrel of olives by pruning requires 5 hours of labor and 1 acre of land. The production of a barrel of olives by the normal process requires only 2 labor hours but takes 2 acres of land. An olive grower has 240 hours of labor available and a total of 150 acres for growing. Because of the olive size difference, a barrel of olives produced on pruned trees sells for $20, whereas a barrel of regular olives has a market price of $35. The grower has determined that because of uncertain demand, no more than 40 barrels of pruned olives should be produced.

Use LP to find:

a. the maximum possible profit.

b. the best combination of barrels of pruned and regular olives.

c. the number of acres that the olive grower should devote to each growing process.

Please show excel formulas

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

Introduction To Managerial Accounting

Authors: Peter C. Brewer, Ray H. Garrison, Eric W. Noreen

2nd Edition

0072922990, 9780072922998

More Books

Students also viewed these Accounting questions