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Computation of ice cream to be manufactured using the linear programming technique.

The Sweet Treat Shop sells ice cream and frozen yogurt by the gallon each in a variety of flavors.   The shop makes one order each of the ice cream and yogurt for the week.  The shop has enough storage space in it freezers to hold a total of 200 gallons.   A gallon of the ice cream costs $0.73 to produce while a gallon of yogurt cost $0.64 to produce.   Buying patterns from the past indicate the demand for yogurt never exceeds 115 gallons per week.   The profit for ice cream is $6.00 per gallon while the profit for yogurt is $7.00 per gallon.   The shop owner has a budget of $100 for the week to make the ice cream and yogurt.

Determine the amount of ice cream and yogurt the shop should make each week.  Explain why this quantity should be made.

Corporate Finance, Finance

  • Category:- Corporate Finance
  • Reference No.:- M9166231

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