Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 100,000 pounds of grade 9 oranges and 120,000 pounds of grade 6 oranges on hands. The average quality of oranges sold in bags must be at least 7, and the average quality of oranges used to produce orange juice must be 8. Each pound of oranges that is used for juice yields a revenue of $1.50 and incurs a variable cost (consisting of labor costs, variable overhead costs, inventory costs, and so on) of $1.05. Each pound of oranges sold in bags yields a revenue of $1.50 and incurs a variable cost of $0.70. Determine how Sunblessed can maximize its profit.
Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades
oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 100,000 pounds of grade
9 oranges and 120,000 pounds of grade 6 oranges on hands. The average quality of oranges sold
in bags must be at least 7, and the average quality of oranges used to produce orange juice must
be 8. Each pound of oranges that is used for juice yields a revenue of $1.50 and incurs a variable
cost (consisting of labor costs, variable overhead costs, inventory costs, and so on) of $1.05. Each
pound of oranges sold in bags yields a revenue of $1.50 and incurs a variable cost of $0.70.
Determine how Sunblessed can maximize its profit.
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