28 Jun THANKSMATE
Thanksmate
Question:
Thanksmate makes three nut mixes for sale to grocery chains. The threemixes, referred to as the Regular Mix, the Deluxe Mix, and the HolidayMix, are made by mixing different percentages of five types of nuts.
In preparation for the fall season, Thanksmate has just purchased thefollowing shipments of nuts at the shown prices:
Type of Nut / Shipment Amount (pounds) / Cost per Shipment ($)
Almond / 6,000 / 7,500
Brazil / 7,500 / 7,125
Filbert / 7,500 / 6,750
Pecan / 6,000 / 7,200
Walnut / 7,500 / 7,875
The Regular Mix consists of 15% almonds, 25% Brazil nuts, 25%filberts, 10% pecans, and 25% walnuts.
The Deluxe Mix consists of 20% of each nut.
The Holiday Mix consists of 25% almonds, 15% Brazil nuts, 15%filberts, 25% pecans, and 20% walnuts.
The profit contribution per pound is:
Regular Mix: $1.65
Deluxe Mix: $2.00
Holiday Mix: $2.25
Orders are summarized here:
Type of Mix / Orders (pounds)
Regular / 10,000
Deluxe / 3,000
Holiday / 5,000
Because demand is running high, Thanksmate expects to receive moreorders than can be satisfied.
Thanksmate is committed to using the available nuts to maximize profitover the fall season; nuts not used will be given to the homeless. Buteven if it is not profitable to do so, Thanksmate has indicated thatthe orders already received must be satisfied.
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