Shop is preparing for the holiday season

Assignment Help Operation Management

Reference no: EM131146011

A small candy shop is preparing for the holiday season. The owner must decide how many bags of deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix has 2/3 pound raisins and 1/3 pound peanuts, and the standard mix has 1/2 pound raisins and 1/2 pound peanuts per bag. The shop has 74 pounds of raisins and 54 pounds of peanuts to work with. Peanuts cost $.60 per pound and raisins cost $1.50 per pound. The deluxe mix will sell for $2.75 per pound, and the standard mix will sell for $2.08 per pound. The owner estimates that no more than 110 bags of one type can be sold.

A. If the goal is to maximize profits, how many bags of each type should be prepared? (Round your answers to the nearest whole number.)

Delux Bags?

Standard Bags?

B. What is the expected profit? (Round your answer to the nearest whole number. Omit the "$" sign in your response.)

Profit?

Reference no: EM131146011

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