Question: Students decided to open up a tea caf on campus in order to make huge profits. For now, the Caf will only serve two drinks:

Students decided to open up a tea caf on campus in order to make huge profits. For now, the Caf will only serve two drinks: milk teas and fruit slushes. They expect to have no more than 200 customers visiting them daily with each customer buying exactly one drink, meaning that no more than 200 drinks will be sold daily. A cup of milk tea requires 0.2 pounds of tea leaves and 0.75 litres of water, while a cup of fruit slush needs 1.5 pounds of frozen fruit and 0.5 litres of water. Caf will receive daily shipments of ingredients with 25 pounds of tea leaves and 120 litres of water for daily usage. At the same time, they need to use at least 15 pounds of frozen fruit every day to keep them fresh. A cup of milk tea can be sold for $3.50, while a cup of fruit slush can be sold for $5.00. How many cups of milk tea and fruit slush should Caf make in any given day to maximize their revenue?

The following LP Model has been set up in Excel; however, some of the cells have been shaded gray

Students decided to open up a tea caf on campus

Students decided to open up a tea caf on campus

Students decided to open up a tea caf on campus

D E F G units Model Output 200 0 Model Requirement 200 25 120 100 A B 1 Bubbly Business Caf - Scenario A 2 3 Milk Tea Fruit Slush 4 Max Customers 5 Max Tea Leaves 6 Max Water 7 Min Frozen Fruit 8 9 Milk Tea Fruit Slush 10 # of cups 0 200 11 12 13 Prices $3.50 $5.00 pounds litres pounds 300 15 Total Revenue $ 1,000.00 What goes in cell B4? What goes in cell C5? What goes in cell E7? Which of the constraints is binding? Max Customers Max Tea Leaves Max Water Min Frozen Fruit None of the constraints are binding (all of the constraints are non-binding)

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