Additional Problem 19-1 (Algo) 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 75 pounds of raisins and 25 pounds of peanuts, and the standard mix has 0.4 pounds of raisins and 0.6 pounds of peanuts per bag. The shop has 120 pounds of raisins and 95 pounds of peanuts to work with. Peanuts cost $075 per pound and raisins cost $2 per pound. The deluxe mix will sell for $3.5 for a one-pound bag, and the standard mix will sell for $2.5 for a one-pound bag. The owner estimates that no more than 125 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 down to a whole number.) Deluxe Standard b. What is the expected profit? (Round your answer to two decimal places.) Expected prof

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Additional Problem 19-1 (Algo)
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 75 pounds of raisins and 25 pounds of peanuts, and the standard
mix has 0.4 pounds of raisins and 0.6 pounds of peanuts per bag. The shop has 120 pounds of raisins and 95 pounds of peanuts to
work with.
Peanuts cost $0.75 per pound and raisins cost $2 per pound. The deluxe mix will sell for $3.5 for a one-pound bag, and the standard
mix will sell for $2.5 for a one-pound bag. The owner estimates that no more than 125 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 down to a whole
number.)
Deluxe
Standard
b. What is the expected profit? (Round your answer to two decimal places.)
Expected prof
Transcribed Image Text:Additional Problem 19-1 (Algo) 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 75 pounds of raisins and 25 pounds of peanuts, and the standard mix has 0.4 pounds of raisins and 0.6 pounds of peanuts per bag. The shop has 120 pounds of raisins and 95 pounds of peanuts to work with. Peanuts cost $0.75 per pound and raisins cost $2 per pound. The deluxe mix will sell for $3.5 for a one-pound bag, and the standard mix will sell for $2.5 for a one-pound bag. The owner estimates that no more than 125 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 down to a whole number.) Deluxe Standard b. What is the expected profit? (Round your answer to two decimal places.) Expected prof
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