SUBPART D !!! Tom's, Inc., produces various Mexican food products and sells them to Western Foods, a chain of grocery stores located in Texas and New Mexico. Tom's, Inc., makes two salsa products: Western Foods Salsa and Mexico CitySalsa. Essentially, the two products have different blends of whole tomatoes, tomato sauce, and tomato paste. The Western Foods Salsa is a blend of 50% vhole tomatoes, 30% tomato sauce, and 20% tomato paste. TheMexico City Salsa, which has a thicker and chunkier consistency, consists of 70% whole tomatoes, 10% tomato sauce, and 20% tomato paste. Each jar of salsa produced weighs 10 ounces.For the current production period, Tom's, Inc., can purchase up to 285 pounds of whole tomatoes, 150 pounds of tomato sauce, and 100 pounds of tomato paste; the price per pound for these ingredients is $0.96, $0.64,and $0.56, respectively. The cost of the spices and the other ingredients is approximately $0.10 per jar. Tom's, Inc., buys empty glass jars for $0.02 each, and labeling and filling costs are estimated to be $0.03 for each jarof salsa produced. Tom's contract with Western Foods results in sales revenue of $1.64 for each jar of Western Foods Salsa and $1.93 for each jar of Mexico City Salsa. Lettingw = jars of Western Foods SalsaM = jars of Mexico City Salsaleads to the formulation (units for constraints are ounces):Max1W + 1.25Ms.t.5W + 7M3W + 1M2W + 2Mw, M 2 0S 4,560s 2,400s 1,600oz of whole tomatoesoz of tomato sauceoz of tomato pasteThe computer solution is shown below.Optimal Objective Value = 870.00000VariableValueReduced Cost520.000000.00000280.000000.00000Constraint3lack/SurplusDual Value0.000000.125002560.000000.0000030.000000.18750ObjectiveAllowableAllowableVariableCoefficientIncreaseDecrease1.000000.250000.107141.250000.150000.25000RH3AllowableAllowableConstraintValueIncreaseDecrease4560.000001040.00000560.000002400.00000Infinite560.000001600.00000140.00000297.14286(a) What is the optimal solution, and what are the optimal production quantities?jarsMjarsprofit$4(b) Specify the objective function ranges. (Round your answers to five decimal places.)Western Foods SalsaMexico City Salsato(c) What are the dual values for each constraint? Interpret each.constraint 1O One additional ounce of whole tomatoes will improve profits by $0.188.O One additional ounce of whole tomatoes will improve profits by $560.00.O One additional ounce of whole tomatoes will improve profits by $0.125.O Additional ounces of whole tomatoes will not improve profits.constraint 2O One additional ounce of tomato sauce will improve profits by $0.188.O One additional ounce of tomato sauce will improve profits by $560.0o.O One additional ounce of tomato sauce will improve profits by $0.125.O Additional ounces of tomato sauce vill not improve profits.constraint 3O One additional ounce of tomato paste will improve profits by $0.188.O One additional ounce of tomato paste will improve profits by $560.0o.O One additional ounce of tomato paste will improve profits by $0.125.O Additional ounces of tomato paste vill not improve profits.(d) Identify each of the right-hand-side ranges. (Round your answers to two decimal places. If there is no upper or lower limit, enter NO LIMIT.)constraint 1toconstraint 2toconstraint 3to

Range for constraint is that range for which the optimal solution stays same and does not change…

Tom's, Inc., produces various Mexican food products and sells them to Western Foods, a chain of grocery stores located in Texas and New Mexico. Tom's, Inc., makes two salsa products: Western Foods Salsa and Mexico City Salsa. Essentially, the two products have different blends of whole tomatoes, tomato sauce, and tomato paste. The Western Foods Salsa is a blend of 50% whole tomatoes, 30% tomato sauce, and 20% tomato paste. The Mexico City Salsa, which has a thicker and chunkier consistency, consists of 70% whole tomatoes, 10% tomato sauce, and 20% tomato paste. Each jar of salsa produced weighs 10 ounces. For the current production period, Tom's, Inc., can purchase up to 285 pounds of whole tomatoes, 150 pounds of tomato sauce, and 100 pounds of tomato paste: the price per pound for these ingredients is $0.96, $0.64, and $0.56, respectively. The cost of the spices and the other ingredients is approximately $0.10 per jar. Tom's, Inc., buys empty glass jars for $0.02 each, and labeling and filling costs are estimated to be $0.03 for each jar of salsa produced. Tom's contract vith Western Foods results in sales revenue of $1.64 for each jar of Western Foods Salsa and $1.93 for each jar of Mexico City Salsa. Letting w = jars of Western Foods Salsa M = jars of Mexico City Salsa leads to the formulation (units for constraints are ounces): Max1W + 1.25M s.t. Sw + 7M 3W + 1M 2W + 2M W. M 20 S 4,560 s 2,400 S 1,600 oz of whole tomatoes oz of tomato sauce oz of tomato paste The computer solution is shown below. Optimal Objective Value = 70.00000 Value Reduced Cons 520.00000 0.00000 280.00000 0.00000 Constrains Slack/Surplus Dual Value 0.00000 0.12500 S60.00000 0.00000 0.00000 0.18750 Allowable Increase Objective Allowable Variable Coefficient Decrease 1.00000 0.25000 0.10714 1.25000 0.15000 0.25000 RHS Allowable Allowable Constrains Value Inerease Decrease 4560.00000 1040.00000 SE0.00000 2400.00000 Infinite Se0.00000 1600.00000 140.00000 297.14206 (a) What is the optimal solution, and what are the optimal production quantities? jars )jars M profit (b) Specify the objective function ranges. (Round your answers to five decimal places.) Western Foods Salsa to Mexico City Salsa to (c) What are the dual values for each constraint? Interpret each. constraint 1 O One additional ounce of whole tomatoes vill improve profits by $0.188. O One additional ounce of whole tomatoes vill improve profits by $560.00. O One additional ounce of whole tomatoes vill improve profits by $0.125. O Additional ounces of whole tomatoes will not improve profits. constraint 2 O One additional ounce of tomato sauce vill improve profits by $0.188. O One additional ounce of tomato sauce vill improve profits by $560.00. O One additional ounce of tomato sauce vill improve profits by $0.125. O Additional ounces of tomato sauce vill not improve profits. constraint 3 O One additional ounce of tomato paste vill improve profits by $0.188. O One additional ounce of tomato paste will improve profits by $560.00. One additional ounce of tomato paste will improve profits by $0.125. O Additional ounces of tomato paste vill not improve profits. (d) Identify each of the right-hand-side ranges. (Round your answers to tvo decimal places. If there is no upper or lower limit, enter NO LIMIT.) constraint 1 to constraint 2 to constraint 3 to

Tom's, Inc., produces various Mexican food products and sells them to Western Foods, a chain of grocery stores located in Texas and New Mexico. Tom's, Inc., makes two salsa products: Western Foods Salsa and Mexico City Salsa. Essentially, the two products have different blends of whole tomatoes, tomato sauce, and tomato paste. The Western Foods Salsa is a blend of 50% whole tomatoes, 30% tomato sauce, and 20% tomato paste. The Mexico City Salsa, which has a thicker and chunkier consistency, consists of 70% whole tomatoes, 10% tomato sauce, and 20% tomato paste. Each jar of salsa produced weighs 10 ounces. For the current production period, Tom's, Inc., can purchase up to 285 pounds of whole tomatoes, 150 pounds of tomato sauce, and 100 pounds of tomato paste: the price per pound for these ingredients is $0.96, $0.64, and $0.56, respectively. The cost of the spices and the other ingredients is approximately $0.10 per jar. Tom's, Inc., buys empty glass jars for $0.02 each, and labeling and filling costs are estimated to be $0.03 for each jar of salsa produced. Tom's contract vith Western Foods results in sales revenue of $1.64 for each jar of Western Foods Salsa and $1.93 for each jar of Mexico City Salsa. Letting w = jars of Western Foods Salsa M = jars of Mexico City Salsa leads to the formulation (units for constraints are ounces): Max1W + 1.25M s.t. Sw + 7M 3W + 1M 2W + 2M W. M 20 S 4,560 s 2,400 S 1,600 oz of whole tomatoes oz of tomato sauce oz of tomato paste The computer solution is shown below. Optimal Objective Value = 70.00000 Value Reduced Cons 520.00000 0.00000 280.00000 0.00000 Constrains Slack/Surplus Dual Value 0.00000 0.12500 S60.00000 0.00000 0.00000 0.18750 Allowable Increase Objective Allowable Variable Coefficient Decrease 1.00000 0.25000 0.10714 1.25000 0.15000 0.25000 RHS Allowable Allowable Constrains Value Inerease Decrease 4560.00000 1040.00000 SE0.00000 2400.00000 Infinite Se0.00000 1600.00000 140.00000 297.14206 (a) What is the optimal solution, and what are the optimal production quantities? jars )jars M profit (b) Specify the objective function ranges. (Round your answers to five decimal places.) Western Foods Salsa to Mexico City Salsa to (c) What are the dual values for each constraint? Interpret each. constraint 1 O One additional ounce of whole tomatoes vill improve profits by $0.188. O One additional ounce of whole tomatoes vill improve profits by $560.00. O One additional ounce of whole tomatoes vill improve profits by $0.125. O Additional ounces of whole tomatoes will not improve profits. constraint 2 O One additional ounce of tomato sauce vill improve profits by $0.188. O One additional ounce of tomato sauce vill improve profits by $560.00. O One additional ounce of tomato sauce vill improve profits by $0.125. O Additional ounces of tomato sauce vill not improve profits. constraint 3 O One additional ounce of tomato paste vill improve profits by $0.188. O One additional ounce of tomato paste will improve profits by $560.00. One additional ounce of tomato paste will improve profits by $0.125. O Additional ounces of tomato paste vill not improve profits. (d) Identify each of the right-hand-side ranges. (Round your answers to tvo decimal places. If there is no upper or lower limit, enter NO LIMIT.) constraint 1 to constraint 2 to constraint 3 to

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter12: Developing And Managing Products

Section12.1: Sriracha Heats Up The Hot Sauce Market

Problem 3VC

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