ABC Company produces two types of cheese. The cheese spreads are packaged in 120-ounce containers, which are then sold to distributors throughout the Northeast. The regular blend contains 80% mild cheddar and 20% extra sharp, and the Zesty blend contains 60% mild cheddar and 40% extra sharp. This year, a local dairy cooperative has offered to provide up to 8,100 pounds of mild cheddar cheese for P60 per pound and up to 3000 pounds of extra sharp cheddar cheese for P80 per pound.         The cost to blend and package the cheese spreads, excluding the cost of the cheese, is P10 per container. If each container of Regular is sold for P1,000 and each container of Zesty is sold for P1,200 per container, how many containers of Regular and Zesty should the ABC Company produce?

Microeconomic Theory
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ISBN:9781337517942
Author:NICHOLSON
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Chapter9: Production Functions
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Q: ABC Company produces two types of cheese. The cheese spreads are packaged in 120-ounce containers, which are then sold to distributors throughout the Northeast. The regular blend contains 80% mild cheddar and 20% extra sharp, and the Zesty blend contains 60% mild cheddar and 40% extra sharp. This year, a local dairy cooperative has offered to provide up to 8,100 pounds of mild cheddar cheese for P60 per pound and up to 3000 pounds of extra sharp cheddar cheese for P80 per pound.

        The cost to blend and package the cheese spreads, excluding the cost of the cheese, is P10 per container. If each container of Regular is sold for P1,000 and each container of Zesty is sold for P1,200 per container, how many containers of Regular and Zesty should the ABC Company produce?

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