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What is the maximum price the company

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Reference no: EM132948873

a) What are the units of shadow prices of the pears and packaging constraint?

b) Which of the resources constrains the total contribution margin?

c) What is the maximum price the company would be willing to pay for additional lbs of peaches? How much should be purchased? Justify Maximum amount for additional pears is $176.

d) A fruit grower is offering to sell pears at $0.467/lb. Will you buy additional quantities? If so, how much? Justify your decision.

e) The company can purchase a new mixing machine that would increase the available mixing time from 43,000 to 45,000 hours. How much is this additional capacity worth?

f) The company can also purchase a new packaging machine that would increase the available packaging time from 40,000 to 50,000 hours. Would this impact the optimal solution?

g) Due to a problem with the fruit supplier, only 320,000 pounds of peaches will be available. Will this impact the optimal product mix?

h) If the manager were to attempt to secure additional units of only one of the resources, what should it be? Justify.

i) If the company revised the selling price of fruit cocktail so that the profit margin increased from $6 to $10, would the optimal solution change?

j) There is an opportunity to renegotiate the contract of fruit delight with Lightshine Company. What is your recommendation?

Reference no: EM132948873

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