Reference no: EM132070671

Louisiana Hot produces two steak sauces: Spicy Diablo and Red Baron. These sauces are both made by blending two ingredients, A and B. Some flexibility is permitted in the recipes for the two sauces. The allowable percentages, along with revenue and cost data, are shown below. As much as 40 quarts of ingredient A and 30 quarts of ingredient B can be purchased. Louisiana Hot can sell all of the two sauces that it produces. INGREDIENT Sauce A B Sales Price/ Quart Spicy Diablo at least 25% at least 50% $3.35 Red Baron At most 75% * $2.85 Cost per Quart $1.60 $2.59 * No explicit maximum or minimum Develop and solve a model that enables Louisiana Hot to determine their best net revenue producing product mix. Answer must include the net revenue and the product mix.