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Q1) New Age Pharmaceuticals manufactures the drug NasaMist from 4 chemicals. Today, company should manufacture1000 pounds of drug. Three active ingredients in NasaMist are A, B, and C. By weight, at least 8% of NasaMist should consist of A, at least 4% of B, and at least 2% of C. Cost per pound of each chemical and amount of each active ingredient in 1 pound each of chemical. It is essential that at least 100 pounds of chemical 2 are utilized. Find out the cheapest way of manufacturing today's batch of NasaMist.
NewAge data
Cost/lb of chemicals
Chemical 1
$8
Chemical 2
$10
Chemical 3
$11
Chemical 4
$14
Ingredient/lb of chemical
A
B
C
0.03
0.02
0.01
0.06
0.04
0.10
0.12
0.09
The standard deviation of the sample is $3,000. Interpret your findings.
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