Question

In: Statistics and Probability

Problem 7-37 (Algorithmic) The New England Cheese Company produces two cheese spreads by blending mild cheddar...

Problem 7-37 (Algorithmic)

The New England Cheese Company produces two cheese spreads by blending mild cheddar cheese with extra sharp cheddar cheese. The cheese spreads are packaged in 12-ounce containers, which are then sold to distributors throughout the Northeast. The Regular blend contains 65% mild cheddar and 35% extra sharp, and the Zesty blend contains 75% mild cheddar and 25% extra sharp. This year, a local dairy cooperative offered to provide up to 8100 pounds of mild cheddar cheese for $1.30 per pound and up to 3500 pounds of extra sharp cheddar cheese for $1.50 per pound. The cost to blend and package the cheese spreads, excluding the cost of the cheese, is $0.30 per container. If each container of Regular is sold for $1.80 and each container of Zesty is sold for $2.10, how many containers of Regular and Zesty should New England Cheese produce? Do not round your interim computations. If required, round your answers to the nearest whole number.

Let R = number of containers of Regular
Z = number of containers of Zesty

Optimal Solution: R = , Z = , profit = $  .

Solutions

Expert Solution

12 ounce = 0.75 pounds

Solution (Answer report)

Objective Cell (Max)
Cell Name Original Value Final Value
$E$8 Profit 0 11340
Variable Cells
Cell Name Original Value Final Value
$C$3 Value of R 0 0
$D$3 Value of Z 0 14400

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