Formulate a linear programming model for this problem

Assignment Help Business Economics

Reference no: EM131006225

The Charm City Bakery makes coffee cakes and Danish pastries in large pans. The main ingredients are flour and sugar. There are 25 pounds of flour and 16 pounds of sugar available. The demand for coffee cakes is less than or equal to 4. Five pounds of flour and 2 pounds of sugar are required to make a pan of coffee cakes, and 5 pounds of flour and 4 pounds of sugar are required to make a pan of Danish pastries. A pan of coffee cakes has a profit of $4, and a pan of Danish pastries has a profit of $6. Determine the number of pans of cakes and Danish pastries to produce each day so that profit will be maximized.

(a) Formulate a linear programming model for this problem.

(b) Find the optimal solution of this model by hand using the corner point’s graphical method.

Reference no: EM131006225

Questions Cloud

Why will bonds always sell at their price plus any interest : Why will bonds always sell at their price plus any interest that has accrued since the last interest date?

Political arguments for regional economic integration : You are the international manager of a US business that has just invented a revolutionary computer chip that can perform the functions of all known chips plus much, much more, but costs only half as much to manufacture. What are the economic and poli..

Consumption or production externality : Answer the following question for each of the following examples: (i) smoking by individuals; (ii) toxic waste production by firms. Is there any externality? If so, describe one possible externality, including references to whether it is positive or ..

What is the conceptual justification : If a company prepares its financial statements according to International Financial Reporting Standards, how would it account for convertible bonds it issues for $12.5 million? What is the conceptual justification?

Formulate a linear programming model for this problem : The Charm City Bakery makes coffee cakes and Danish pastries in large pans. The main ingredients are flour and sugar. There are 25 pounds of flour and 16 pounds of sugar available. Formulate a linear programming model for this problem. Find the optim..

Why do firms like southwest hedge : Why do firms like Southwest hedge? What are the benefits of hedging? Evaluate the plain vanilla swaps strategy vs the Call Options (Caps) strategy. Which one do you prefer and why?

The permanent income hypothesis and life-cycle hypothesis : Describe how a change in income and/or walth impacts saving and consumption patterns under; 1) the permanent income hypothesis, 2) the life-cycle hypothesis; and 3) Halls random walk Hypothesis

Price elasticity of demand along a linear : Taco Bell firm raises the price of its tacos. The price elasticity of demand for Taco Bell tacos equals 5.0. What happens to the Taco Bell's total revenue? Which of the following statements is correct for the price elasticity of demand along a linear..

Consider the conversation : Consider the following conversation: Does the logic of the reader (G) make any sense, or does it violate economic reasoning?

User Account

All Pages