Krazy Snacks Company plans to produce and market two special nut mixes during th
ID: 2780241 • Letter: K
Question
Krazy Snacks Company plans to produce and market two special nut mixes during the upcoming Christmas season. Each pound of Mix A will contain 0.5 pounds of peanuts and 0.5 pounds of cashews. Each pound of Mix B will contain 0.6 pounds of peanuts, 0.25 pounds of cashews and 0.15 pounds of almonds. Mix A will sell for $3.50 per pound, Mix B will sell for $2.75 per pound. The following table gives additional information concerning the ingredients that are available.
Ingredient
Amount available (lbs)
Cost per lb
Peanuts
35,000
$0.90
Cashews
15,000
$1.50
Almonds
10,000
$0.70
Write the LP model to determine how much of each mix should be produced in order to maximize profit.
Ingredient
Amount available (lbs)
Cost per lb
Peanuts
35,000
$0.90
Cashews
15,000
$1.50
Almonds
10,000
$0.70
Explanation / Answer
Lets assume peanuts = P
Cashews = C
Almonds = A
Mix A = 0.5*P + 0.5*C
Mix B = 0.6*P + 0.25*C + 0.15*A
Max . Profit = 3.5*(0.5*P + 0.5*C) + 2.75*(0.6*P + 0.25*C + 0.15*A) – 0.9*P – 1.5*C – 0.7*A
Where,
P < = 35000
C < = 15000
A < = 10000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.