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Popeye Canning is contracted to receive daily 60,000 lb of ripe tomatoes at 7 cents per pound from which it produces canned tomato juice, tomato sauce, and tomato paste. The canned products are packaged in 24-can cases. A can of juice uses lib of fresh tomatoes, a can of sauce uses 1/2 lb, and a can of paste uses 3/4 lb. the company's daily share of the market is limited to 2000 cases of juice, 5000 cases of sauce, and 6000 cases of paste. The wholesale prices per case of juice, sauce, and paste are $21, $9, and $12, respectively.
(a) Develop an optimum daily production program for Popeye.
(b) If the price per case for juice and paste remains fixed as given in the problem, use sensitivity analysis to determine the unit price range Popeye should charge for a case of sauce to keep the optimum product mix unchanged.
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