Question

A cocktail nut mix should contain the following percentage requirement for a one-pound can. At least 10% almonds. Almonds cost $2.50 per pound. A maximum of 50% peanuts at $1.40 per pound At least 20% walnuts at $2.25 per pound. A maximum of 40% of cashew nuts at $2.00 per pound. The can costs $0.10. Calculate the proportion of these nuts by weight to maximize the profit per can. What is the profit per can if each can is sold for $3.00 a can

Answer 1

$1.10

Explanation:

Below are analysis of each cost required to be calculated

Almonds:

Minimum 10% almonds of $2.50 per pound

10% of $2.50 = $0.25

Peanuts:

Maximum 50% peanuts at $1.40 per pound

50% of $1.40 = $0.70

Walnuts:

Minimum 20% at 2.25 per pound

20% of $2.25 = $0.45

Cashew:

Maximum of 40% of cashew of $2 per pound

40% of $2 = $0.80

The cost of this can is $0.10

For the cocktail , we need the minimum quantities of each nuts + the cost of can

The selling price is $3.

The profit will be Selling price - Cost. Therefore the profit per can will be:

Profit = $3- (0.25-0.45+0.70+0.40+0.10)

=$1.10