Maximize the net revenue from the sale of the sauces

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Reference no: EM133424665

Question: Blending Problem. McNaughton, Inc., produces two steak sauces, Spicy Diablo and mild Red Baron. These sauces are both made by blending two ingredients, A and B. A certain level of flexibility is permitted in the formulas for these products. The allowable percentages, along with revenue and cost data, are given in the following table. Up to 40 quarts of A and 30 quarts of B could be purchased. McNaughton can sell as much of these sauces as it produces. Formulate an LP whose objective is to maximize the net revenue from the sale of the sauces. SAUCE INGREDIENT SALES PRICE PER A B QUART ($) Spicy Diablo at least 25% at least 50% 3.35 Red Baron at most 75% * 2.85 Cost per Quart $1.60 $2.59 * No explicit maximum or minimum percentage

Reference no: EM133424665

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