Answered: Resource Allocation Your salami…

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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Question

Resource Allocation Your salami manufacturing plant can order up to 1,000 pounds of pork and 2,400 pounds of beef per day for use in manufacturing its two specialties: Count Dracula Salami and Frankenstein Sausage. Production of the Count Dracula variety requires 1 pound of pork and 3 pounds of beef for each salami, while the Frankenstein variety requires 2 pounds of pork and 2 pounds of beef for every sausage. In view of your heavy investment in advertising Count Dracula Salami, you have decided that at least one third of the total production should be Count Dracula. On the other hand, because of the health-conscious consumer climate, your Frankenstein Sausage (sold as having less beef) is earning your company a profit of $9 per sausage, while sales of the Count Dracula variety are down and it is earning your company only $1 per salami. Given these restrictions, how many of each kind of sausage should you produce to maximize profits, and what is the maximum possible profit (in dollars)?

Dracula Salamis

Frankenstein Sausages

profit$

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