A brewery produces regular beer and a lower-carbohydrate "light* beer. Steady customers of the brewery buy 12 units of regular beer and 18 units of light beer monthly. While setting up the brewery to produce the beers. the management decides to produce extra beer, beyond that needed to satisfy customers. The cost per unit of regular beer is $32,000 and the cost per unit of light beer is $60,000. Every unit of reqular beer brings in $100,000 in revenue, while every unit of light beer brings in $300,000 in revenue. The brewery needs at least $9,000,000 in revenue, and has determined that the total demand will be at least 50 units of beer. Complete parts (a) and (b). (b) Suppose the minimum revenue is increased to $9,400,000. Use shadow costs to calculate the total production cost. The shadow cost of production is $◻️The increased minimum revenue corresponds to a total production cost of $◻️ (Type integers or decimals.)
A brewery produces regular beer and a lower-carbohydrate "light* beer. Steady customers of the brewery buy 12 units of regular beer and 18 units of light beer monthly. While setting up the brewery to produce the beers. the management decides to produce extra beer, beyond that needed to satisfy customers. The cost per unit of regular beer is $32,000 and the cost per unit of light beer is $60,000. Every unit of reqular beer brings in $100,000 in revenue, while every unit of light beer brings in $300,000 in revenue. The brewery needs at least $9,000,000 in revenue, and has determined that the total demand will be at least 50 units of beer. Complete parts (a) and (b). (b) Suppose the minimum revenue is increased to $9,400,000. Use shadow costs to calculate the total production cost. The shadow cost of production is $◻️The increased minimum revenue corresponds to a total production cost of $◻️ (Type integers or decimals.)
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
Problem 5SC: If during the following year it is predicted that each comedy skit will generate 30 thousand and...
Related questions
Question
A brewery produces regular beer and a lower-carbohydrate "light* beer. Steady customers of the brewery buy 12 units of regular beer and 18 units of light beer monthly. While setting up the brewery to produce the
beers. the management decides to produce extra beer, beyond that needed to satisfy customers. The cost per unit of regular beer is $32,000 and the cost per unit of light beer is $60,000. Every unit of reqular beer
brings in $100,000 in revenue, while every unit of light beer brings in $300,000 in revenue. The brewery needs at least $9,000,000 in revenue, and has determined that the total demand will be at least 50 units of
beer. Complete parts (a) and (b).
(b) Suppose the minimum revenue is increased to $9,400,000. Use shadow costs to calculate the total production cost.
The shadow cost of production is $◻️The increased minimum revenue corresponds to a total production cost of $◻️
(Type integers or decimals.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 1 images
Recommended textbooks for you
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Algebra for College Students
Algebra
ISBN:
9781285195780
Author:
Jerome E. Kaufmann, Karen L. Schwitters
Publisher:
Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Algebra for College Students
Algebra
ISBN:
9781285195780
Author:
Jerome E. Kaufmann, Karen L. Schwitters
Publisher:
Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning