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Decision 4: Operations and Marketing - Product Mix Richelieu Specialty Paints has received a special order for two types of paints: Marine Coat, used on boats and Blocker, used on items that receive a great deal of strong, hot sun. Both paints use a UV blocking additive and a mold inhibitor. Richelieu currently has 240 litres of the mold inhibitor on hand and 300 litres of the UV blocking additive. Mold Inhibitor Used (litres per can) UV Blocking Additive Used (litres per can) CM per can Blocker 0.4 1 $3.00 Marine Coat 0.6 0.5 $6.00 The special-order customer has requested at least 200 cans of Marine Coat but will take up to 350 cans if available. The customer will take as much Blocker paint as Richelieu can provide. Amanda would like to generate the highest total contribution margin possible for this order and needs to know how much of each product should be made. G X1 A D E F 1 Low Knock Oil Company 2 3 X100 Rep X100 Econ X220 Reg X220 Econ 4 Variable X2 X3 X4 5 Solution 15000 26666.67 10000 5333.33 Total Cost 6 Cost 30 30 34.8 34.8 1783600 7 8 Constraints LHS 9 Demand Regular 1 25000 10 Damand Economy 1 32000 11 Ing. A in Regular -0.1 0.15 0 12 Ing. B in Economy 0.05 -0.25 0 Sign RHS 25000 32000 0 1 IA IV V V 0 Decision 4: Operations and Marketing - Product Mix Richelieu Specialty Paints has received a special order for two types of paints: Marine Coat, used on boats and Blocker, used on items that receive a great deal of strong, hot sun. Both paints use a UV blocking additive and a mold inhibitor. Richelieu currently has 240 litres of the mold inhibitor on hand and 300 litres of the UV blocking additive. Mold Inhibitor Used (litres per can) UV Blocking Additive Used (litres per can) CM per can Blocker 0.4 1 $3.00 Marine Coat 0.6 0.5 $6.00 The special-order customer has requested at least 200 cans of Marine Coat but will take up to 350 cans if available. The customer will take as much Blocker paint as Richelieu can provide. Amanda would like to generate the highest total contribution margin possible for this order and needs to know how much of each product should be made. G X1 A D E F 1 Low Knock Oil Company 2 3 X100 Rep X100 Econ X220 Reg X220 Econ 4 Variable X2 X3 X4 5 Solution 15000 26666.67 10000 5333.33 Total Cost 6 Cost 30 30 34.8 34.8 1783600 7 8 Constraints LHS 9 Demand Regular 1 25000 10 Damand Economy 1 32000 11 Ing. A in Regular -0.1 0.15 0 12 Ing. B in Economy 0.05 -0.25 0 Sign RHS 25000 32000 0 1 IA IV V V 0