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 Il costs $0.80 per gallon. At most $144 is available for purchasing milk. Dairy I can supply at most 50 gallons averaging 3.7% butterfat, and dairy II can supply at most 80 gallons averaging 2.9% butterfat. The company can buy at most 100 gallons of milk.1) How much milk from each supplier should the company buy to get at most 100 gallons of milk with the maximum amount of butterfat? What is the maximum amount of butterfat?2) The solution from part a) leaves both dairy I and dairy II with excess capacity. Calculate the amount of additional milk each dairy could produce.Is there any way all this capacity could be used while still meeting the other constraints? Explain.A. Yes, 10 more gallons can be bought from dairy I without going over budget.B. No. Any more milk purchased from either dairy will go over budget.C. Yes. 10 more gallons can be bought from dairy I and 20 more from dairy II without going over budget.D. Yes, 10 more gallons can be bought from dairy I without going over budget.
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 Il costs $0.80 per gallon. At most $144 is available for purchasing milk. Dairy I can supply at most 50 gallons averaging 3.7% butterfat, and dairy II can supply at most 80 gallons averaging 2.9% butterfat. The company can buy at most 100 gallons of milk.1) How much milk from each supplier should the company buy to get at most 100 gallons of milk with the maximum amount of butterfat? What is the maximum amount of butterfat?2) The solution from part a) leaves both dairy I and dairy II with excess capacity. Calculate the amount of additional milk each dairy could produce.Is there any way all this capacity could be used while still meeting the other constraints? Explain.A. Yes, 10 more gallons can be bought from dairy I without going over budget.B. No. Any more milk purchased from either dairy will go over budget.C. Yes. 10 more gallons can be bought from dairy I and 20 more from dairy II without going over budget.D. Yes, 10 more gallons can be bought from dairy I without going over budget.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
None
Transcribed Image Text: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 Il costs $0.80 per gallon. At most $144 is available
for purchasing milk. Dairy I can supply at most 50 gallons averaging 3.7% butterfat, and dairy II can supply at most 80 gallons averaging 2.9% butterfat. The company can buy at most 100 gallons of milk.1) How much milk
from each supplier should the company buy to get at most 100 gallons of milk with the maximum amount of butterfat? What is the maximum amount of butterfat?2) The solution from part a) leaves both dairy I and dairy II
with excess capacity. Calculate the amount of additional milk each dairy could produce.Is there any way all this capacity could be used while still meeting the other constraints? Explain.A. Yes, 10 more gallons can be
bought from dairy I without going over budget.B. No. Any more milk purchased from either dairy will go over budget.C. Yes. 10 more gallons can be bought from dairy I and 20 more from dairy II without going over
budget.D. Yes, 10 more gallons can be bought from dairy I without going over budget.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education