Question: 1/2 1/2 1. A micro-brewery distributes its beer to two Southeastern areas. If it spends x, promoting its beer in area 1, then it can

1/2 1/2 1. A micro-brewery distributes its beer

1/2 1/2 1. A micro-brewery distributes its beer to two Southeastern areas. If it spends x, promoting its beer in area 1, then it can sell 6x," cases of beer in that area. If it spends x, promoting its beer in area 2, then it can sell 4x, cases of beer in that area. Each case of beer sold in area 1 sells for 20 and the shipping and production costs for each case are 10. Each case of beer sold in area 2 sells for 18 and shipping and production costs for each case are 7. A total of 200 is available for promotion. Answer the following: a) How much should the micro-brewery spend on promotion in area 1 and area 2 in order to maximise its profit? [13 marks] b) Interpret the value of the Lagrange multiplier. [2 marks)

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