The White Horse Apple Products Company purchases apples from local growers and makes applesauce and apple juice. It costs $0.60 to produce a jar of applesauce and $0.85 to produce a bottle of apple juice. The company has a policy that at least 30% but not more than 60% of its output must be applesauce. The company wants to meet but not exceed the demand for each product. The marketing manager estimates that the demand for applesauce is a maximum of 5,000 jars, plus an additional 3 jars for each $1 spent on advertising. The maximum demand for apple juice is estimated to be 4,000 bottles, plus an additional 5 bottles for every $1 spent to promote apple juice. The company has $16,000 to spend on producing and advertising applesauce and apple juice. Applesauce sells for $1.45 per jar; apple juice sells for $1.75 per bottle. The company wants to know how many units of each to produce and how much advertising to spend on each to maximize profit. a. Formulate a linear programming model for this problem. b. Solve the model by using the computer.
The White Horse Apple Products Company purchases apples from local growers and makes applesauce and apple juice. It costs $0.60 to produce
a jar of applesauce and $0.85 to produce a bottle of apple juice. The company has a policy that at least 30% but not more than 60% of its output
must be applesauce.
The company wants to meet but not exceed the demand for each product. The marketing manager estimates that the demand for applesauce is a
maximum of 5,000 jars, plus an additional 3 jars for each $1 spent on advertising. The maximum demand for apple juice is estimated to be 4,000
bottles, plus an additional 5 bottles for every $1 spent to promote apple juice. The company has $16,000 to spend on producing and advertising
applesauce and apple juice. Applesauce sells for $1.45 per jar; apple juice sells for $1.75 per bottle. The company wants to know how many units
of each to produce and how much advertising to spend on each to maximize profit.
a. Formulate a linear programming model for this problem.
b. Solve the model by using the computer.
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