Holiday Fruit Company buys oranges and processes them into gift fruit baskets and fresh juice. The company grades the fruit it buys on a scale from 1 (lowest quality) to 5 (highest quality). The following table summarizes Holiday’s current inventory of fruit.

Supply

Grade (1000s of lbs)

1 ........ 90

2 .........225

3 ........300

4 ........100

5 ......... 75

Each pound of oranges devoted to fruit baskets results in a marginal profit of $2.50, whereas each pound devoted to fresh juice results in a marginal profit of $1.75. Holiday wants the fruit in its baskets to have an average quality grade of at least 3.75 and its fresh juice to have a average quality grade of at least 2.50.

a. Formulate an optimization model for this problem.

b. Implement your model in a spreadsheet and solve it.

c. What it the optimal solution?