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Q. Hilltop Coffee manufactures a coffee product by blending three types of coffee beans. Cost per pound and available pounds of each bean are as follows:
Consumer tests with coffee products were used to provide ratings on a scale of 0-100, with higher ratings indicating higher quality. Product quality standards for blended coffee require a consumer rating for aroma to be at least 75 and a consumer rating for taste to be at least 80. individual ratings of aroma and taste for coffee made from 100% of each bean are as follows:
Assume that aroma and taste attributes of coffee blend will be a weighted average of attributes of beans used in blend.
a. What is minimum-cost blend that will meet quality standards and provide 1000 pounds of blended coffee product?
b. What is cost per pound for coffee blend?
c. Determine aroma and taste ratings for coffee blend.
d. If additional coffee were to be produced, what would be expected cost per pound?
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