MATH 1630 Summer 2018 Homework: Section 3.3 Homework Save Score: 0 of 1 pt 5 of
ID: 1165208 • Letter: M
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MATH 1630 Summer 2018 Homework: Section 3.3 Homework Save Score: 0 of 1 pt 5 of 9 (4 complete) Hw Score: 25.93%, 2.33 Bus Econ 3.3.13 Question Help A dairy company gets milk from two dairies and then blends the milk to get the desired amount of butterfat. Milk from dairy I costs $2.40 per gallon, and milk from dairy II costs $0.80 per gallon. At most $144 is available for purchasing milk. Dairy I can supply at most 55 gallons averaging 3.9% butterfat, and dairy 11 can supply at most 80 gallons averaging 2.9% butterfat. Answer parts a and b. a. How much milk from each supplier should the company buy to get at most 100 gallons of milk with the maximum amount of butterfat? The company should buy gallons from dairy I and gallons from dairy Il. Enter your answer in the edit fields and then click Check Answer. parts remaining Clear All Check AnswerExplanation / Answer
EXPLINATION:
Cost of milk from dairy 1 = $ 2.40 (P1)
Supply availability at dairy 1 = 55 gallons (X)
Cost of milk from dairy 2 = $ 0.80 (P2)
Supply availability at dairy 2 = 80 gallons (Y)
Budget available with dairy company = $ 144 (M)
With this budget company can buy 144 ÷ 2.40 = 60 gallons of milk from Dairy 1 and with the same amount of money company can buy 144 ÷ 0.80 = 180 gallons of milk from Dairy 2.
Answer (a).
To get the most 100 gallons of milk from both dairies company uses its budget constrain formula I.e,
P1X + P2Y = M
This equation says that the amount of two goods multiplied by their prices must be equal to total monet.
Therefore,
2.40 × 40 + 0.80 × 60 = 144
96 + 48 = 144
Therefore, if company buyes 40 gallons of milk from Dairy 1 and 60 gallons of milk from Dairy 2 it will get most 100 gallons of milk with maximum amount of butterfat by spending all of its budget I.e, $144.
Answer (b)
As explained in answer (a) company should buy 40 gallons of milk from Dairy 1 and 60 gallons of milk from Dairy 2.
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