A small candy shop is preparing for the holiday season. The owner must decide how many...

 

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A small candy shop is preparing for the holiday season. The owner must decide how many bags of deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix has .65 pounds of raisins and .35 pounds of peanuts, and the standard mix has 0.4 pounds of raisins and 0.6 pounds of peanuts per bag. The shop has 90 pounds of raisins and 95 pounds of peanuts to work with. Peanuts cost $0.75 per pound and raisins cost $2 per pound. The deluxe mix will sell for $3.5 for a one-pound bag, and the standard mix will sell for $2.5 for a one-pound bag. The owner estimates that no more than 130 bags of one type can be sold. a. If the goal is to maximize profits, how many bags of each type should be prepared? (Round your answers down to a whole number.) Deluxe: Standard: b. What is the expected profit? (Round your answer to two decimal places.) Expected profit: A small candy shop is preparing for the holiday season. The owner must decide how many bags of deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix has .65 pounds of raisins and .35 pounds of peanuts, and the standard mix has 0.4 pounds of raisins and 0.6 pounds of peanuts per bag. The shop has 90 pounds of raisins and 95 pounds of peanuts to work with. Peanuts cost $0.75 per pound and raisins cost $2 per pound. The deluxe mix will sell for $3.5 for a one-pound bag, and the standard mix will sell for $2.5 for a one-pound bag. The owner estimates that no more than 130 bags of one type can be sold. a. If the goal is to maximize profits, how many bags of each type should be prepared? (Round your answers down to a whole number.) Deluxe: Standard: b. What is the expected profit? (Round your answer to two decimal places.) Expected profit:

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To maximize profits we need to determine how many bags of each type should be prepared Let... View the full answer