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problem: The Sweet Tip 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 & 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 dollar 0.73 to produce while a gallon of yogurt cost dollar 0.64 to produce. Purchasing patterns from the past indicate the demand for yogurt never exceeds 115 gallons per week. The profit for ice cream is dollar 6.00 per gallon while the profit for yogurt is dollar 7.00 per gallon. The shop owner has a budget of dollar 100 for the week to make the ice cream & yogurt.

find out the amount of ice cream & yogurt the shop should make each week. Describe why this quantity should be made.

Basic Finance, Finance

  • Category:- Basic Finance
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