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The Sonoma Apple Products Company purchases apples from local growers and makes applesauce and apple juice. It costs $0.80 to produce a jar of applesauce and $0.60 to produce a bottle of apple juice. The company has a policy that at least 20 percent but no more than 60 percent of its output must be applesauce. The company wants to meet but not exceed the demand for each product. The marketing manager estimates that the demand for applesauce is a maximum of 5,000 jars, plus an additional 3 jars for each $1 spent on advertising for applesauce. The maximum demand for apple juice is estimated to be 4,000 bottles, plus an additional 5 bottles for every $1 spent on advertising for apple juice. The company has $16,000 to spend on producing and advertising its two products. Applesauce sells for $1.75 per jar, and apple juice sells for $1.75 per bottle. Formulate a linear optimization G2015 David Czerwinski BUS 190 model to help the company determine how many units of each product to produce, and how much advertising to spend on each product, in order to maximize profit.

User Jan Gorzny
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6.5k points

1 Answer

5 votes

David Czerwinski

Explanation:

4001ww0

10w09ew

10ew

10w9

10oe

User Minopret
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6.5k points
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