# Question: The White Horse Apple Products Company purchases apples from local

The White Horse Apple Products Company purchases apples from local growers and makes applesauce and apple juice. It costs \$0.60 to produce a jar of applesauce and \$0.85 to produce a bottle of apple juice. The company has a policy that at least 30% but not more than 60% of its output must be applesauce.
The company wants to meet but not exceed the demand for each product. The marketing manager estimates that the demand for applesauce is a maximum of 5,000 jars, plus an additional 3 jars for each \$1 spent on advertising. The maximum demand for apple juice is estimated to be 4,000 bottles, plus an additional 5 bottles for every \$1 spent to promote apple juice. The company has \$16,000 to spend on producing and advertising applesauce and apple juice. Applesauce sells for \$1.45 per jar; apple juice sells for \$1.75 per bottle. The company wants to know how many units of each to produce and how much advertising to spend on each to maximize profit.
a. Formulate a linear programming model for this problem.
b. Solve the model by using the computer.

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