a. How many kilograms of each mix should the company prepare for the maximum revenue? Find the maximum revenue. The company should prepare kg of the first mix and kg of the second mix for a maximum revenue of $ b. The company raises the price of the second mix to $11 per kg. Now how many kilograms of each mix should the company prepare for the maximum revenue? Find the maximum revenue. kg of the first mix and The company should prepare kg of the second mix for a maximum revenue of $.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A candy company has 195 kg of chocolate-covered nuts and 105 kg of chocolate-covered raisins to be sold as two different mixes. One mix will contain half nuts and half raisins and will sell for $7
per kg. The other mix will contain nuts and raisins and will sell for $9.50 per kg. Complete parts a. and b.
1
4
3
4
a. How many kilograms of each mix should the company prepare for the maximum revenue? Find the maximum revenue.
The company should prepare
kg of the first mix and
kg of the second mix for a maximum revenue of $
per kg. Now how many kilograms of each mix should the company prepare for the maximum revenue? Find the maximum revenue.
b. The company raises the price of the second mix to $11
The company should prepare kg of the first mix and
kg of the second mix for a maximum revenue of $
Transcribed Image Text:A candy company has 195 kg of chocolate-covered nuts and 105 kg of chocolate-covered raisins to be sold as two different mixes. One mix will contain half nuts and half raisins and will sell for $7 per kg. The other mix will contain nuts and raisins and will sell for $9.50 per kg. Complete parts a. and b. 1 4 3 4 a. How many kilograms of each mix should the company prepare for the maximum revenue? Find the maximum revenue. The company should prepare kg of the first mix and kg of the second mix for a maximum revenue of $ per kg. Now how many kilograms of each mix should the company prepare for the maximum revenue? Find the maximum revenue. b. The company raises the price of the second mix to $11 The company should prepare kg of the first mix and kg of the second mix for a maximum revenue of $
Expert Solution
Step 1 Introduction:

Here, this is an optimization problem, we need to maximize the total revenue value, 

First, I would formulate the LP, for this LP formulation, I would define the decision variables, constraints and objective function, The detailed data are shown below, 

 

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