Customers buy 13 units of regular beer and 16 units of light beer monthly. The b

Question

Customers buy 13 units of regular beer and 16 units of light beer monthly. The brewery decides to produce extra beer, beyond that needed to satisfy the customers. The cost per unit of regular beer is $32,000 and the cost per unit of light beer is $42,000. Every unit of regular beer brings in $250,000 in revenue, while every unit of light beer brings in $500,000 in revenue. The brewery wants at least $20,000,000 in revenue. At least 38 additional units of beer can be sold. How much of each type of beer should be made so as to minimize total production costs? What is the minimum cost? The brewery should make units of regular beer and units of light beer so as to minimize total production costs. The minimum cost is $. Suppose the minimum revenue is increased to $20,500,000. Use shadow costs to calculate the new total production costs. $ (Simplify your answer. Round to the nearest thousand as needed.)

Explanation / Answer

I think the question is a bit wrong.The company wants 38 additional iunits,rather than at least 38 additional units.

Asnwers:13 Units of regular

38 units of Light

Minimal Cost=2012000

Revenue=22250000

The answer in the second case is still the same at 2012000

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