Reference no: EM131440167
Question: Holcomb Candles, Inc., manufactures decorative candles and has contracted with a national retailer to supply a set of special holiday candles to its 8,500 stores. These include large jars, small jars, large pillars, small pillars, and a package of four votive candles. In negotiating the contract for the display, the manufacturer and retailer agreed that 8 feet would be designated for the display in each store, but that at least 2 feet would be dedicated to large jars and large pillars, and at least 1 foot, to the votive candle packages. At least as many jars as pillars must be provided. The manufacturer has obtained 200,000 pounds of wax, 250,000 feet of wick, and 100,000 ounces of holiday fragrance. The amount of materials and display size required for each product are shown in the following table:
Large Jar Small Jar Large pillar Small Pillar Votive Pack
Wax 0.5 0.25 0.5 0.25 0.3125
Fragrance 0.24 0.12 0.24 0.12 0.15
Wick 0.43 0.22 0.58 0.33 0.8
Display Feet 0.48 0.24 0.23 0.23 0.265
Profit/Unit $0.25 $0.20 $0.24 $0.21 $0.16
How many of each product should be made to maximize the profit? Interpret the shadow prices in the Sensitivity report.
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