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1 Mixing candy SMA page 168, problem 45

2
3 Selling price of candies (per ounce) You have decided to enter the candy business. You are considering producing two
4 Slugger Easy Out types of candies: Slugger candy and Easy Out candy, both of which consist solely of
5 $0.40 $0.50
sugar, nuts, and chocolate. At present you have in stock 10,000 ounces of sugar,
2000 ounces of nuts, and 3000 ounces of chocolate. The mixture used to make Easy
6 Out candy must contain at least 20% nuts. The mixture used to make Slugger candy
7 Production plan (amounts of inputs into each candy) must contain at least 10% nuts and 10% chocolate. Each ounce of Easy Out candy
8 Slugger Easy Out Total used Available can be sold for $0.50, and each ounce of Slugger candy for $0.40. Determine how
9 Sugar 6000 4000 10000 <= 10000 you can maximize your revenue from candy sales.
10 Nuts 1000 1000 2000 <= 2000
(Answer: Total Revenue $6,500)
11 Chocolate 3000 0 3000 <= 3000
12 Produced 10000 5000
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14 Nut lower bounds Chocolate lower bound
15 Slugger Easy Out Slugger
16 10% 20% 10%
17
18 Nut constraints Chocolate constraint
19 Slugger Easy Out Slugger 3000 >= 1000
20 1000 1000
21 <= <=
22 Actual totals 1000 1000
23
24 Required
25
26 Total revenue $6,500

Problem 3.6