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A brewery produces regular beer and a lower-carbohydrate "light" beer. Steady customers of the brewery buy 12 units of regular beer and 18 units of light beer monthly. While setting up the brewery to produce the boors, the management decides to produce extra beer, beyond that needed to satisfy customers. The cost por unit of regular beor is $32,000 and the cost per unit of light beer is $60,000. Every unit of reqular beer brings in $100,000 in revenue, while every unit of light beer brings in $300,000 in revenue. The brewery needs at least $9,000,000 in revenue, and has determined that the total demand will be at least 50 units of beer. Complete parts (a) and (b). (a) How much of each type of beer should be made so as to minimize total production costs? 30 units of regular beer and 20 units of light beer should be made, for a minimum total cost of $ 2160000. (Type integers or decimals.) (b) Suppose the minimum revenue is increased to $9,400,000. Use shadow costs to calculate the total production cost. The shadow cost of production is S The increased minimum revenue corresponds to a total production cost of $ (Type integers or decimals.)

A brewery produces regular beer and a lower-carbohydrate "light" beer. Steady customers of the brewery buy 12 units of regular beer and 18 units of light beer monthly. While setting up the brewery to produce the boors, the management decides to produce extra beer, beyond that needed to satisfy customers. The cost por unit of regular beor is $32,000 and the cost per unit of light beer is $60,000. Every unit of reqular beer brings in $100,000 in revenue, while every unit of light beer brings in $300,000 in revenue. The brewery needs at least $9,000,000 in revenue, and has determined that the total demand will be at least 50 units of beer. Complete parts (a) and (b). (a) How much of each type of beer should be made so as to minimize total production costs? 30 units of regular beer and 20 units of light beer should be made, for a minimum total cost of $ 2160000. (Type integers or decimals.) (b) Suppose the minimum revenue is increased to $9,400,000. Use shadow costs to calculate the total production cost. The shadow cost of production is S The increased minimum revenue corresponds to a total production cost of $ (Type integers or decimals.)

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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A brewery produces regular beer and a lower-carbohydrate "light" beer. Steady customers of the brewery buy 12 units of regular beer and 18 units of light beer monthly. While setting up the brewery to produce the boors, the management decides to produce extra beer, beyond that needed to satisfy customers. The cost por unit of regular beer is $32,000 and the cost per unit of light beer is $60,000. Every unit of reqular beer brings in $100,000 in revenue, while every unit of light beer brings in $300,000 in revenue. The brewery noeds at least $9,000,000 in revenue, and has determined that the total demand will be at least 50 units of beer. Complete parts (a) and (b). (a) How much of each type of beer should be made so as to minimize total production costs? 30 units of regular beer and 20 units of light beer should be made, for a minimum total cost of $ 2160000 (Type integers or decimals.) (b) Suppose the minimum revenue is increased to $9,400,000. Use shadow costs to calculate the total production cost. The shadow cost of production is $. The increased minimum revenue corresponds to a total production cost of $ (Type integers or decimals.)
Transcribed Image Text:A brewery produces regular beer and a lower-carbohydrate "light" beer. Steady customers of the brewery buy 12 units of regular beer and 18 units of light beer monthly. While setting up the brewery to produce the boors, the management decides to produce extra beer, beyond that needed to satisfy customers. The cost por unit of regular beer is $32,000 and the cost per unit of light beer is $60,000. Every unit of reqular beer brings in $100,000 in revenue, while every unit of light beer brings in $300,000 in revenue. The brewery noeds at least $9,000,000 in revenue, and has determined that the total demand will be at least 50 units of beer. Complete parts (a) and (b). (a) How much of each type of beer should be made so as to minimize total production costs? 30 units of regular beer and 20 units of light beer should be made, for a minimum total cost of $ 2160000 (Type integers or decimals.) (b) Suppose the minimum revenue is increased to $9,400,000. Use shadow costs to calculate the total production cost. The shadow cost of production is $. The increased minimum revenue corresponds to a total production cost of $ (Type integers or decimals.)
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