QUESTION 1 1.The optimal output plan: "Results in an optimal revenue of $55,200"

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QUESTION 1

1. The optimal output plan:

"Results in an optimal revenue of $55,200"

"Requires the production of 25,000 pounds of restaurant blend"

"Requires the production of 10,000 pounds of hotel blend "

"Requires the purchase of 8,500 pounds of Liberica"

Results in slack availability for Liberica

1 points

QUESTION 2

1. The sensitivity analysis indicates that:

No amount of additional Liberica purchased would improve the profitability

No amount of additional Restaurant blend produced would improve the profitability

Any amounts of additional Market blend would improve the profitability

Any amount of additional Hotel blend would improve the profitability

Any amount of additional capacity in processing plant would improve the profitability

1 points

QUESTION 3

1. The economic value of an additional pound of Hotel blend produced is

-0.085

0.085

0.5525

1.25

1 points

QUESTION 4

1. How does the optimal profit vary with the unit cost of Robusta beans?

$0.00 increase in the optimal profit per each $0.05 increase in the cost per pound

$0.05 increase in the optimal profit per each $0.05 decrease in the cost per pound

$0.65 increase in the optimal profit per each $0.05 decrease in the cost per pound

$818.75 increase in the optimal profit per each $0.05 decrease in the cost per pound

$818.75 increase in the optimal profit per each $0.05 increase in the cost per pound

1 points

QUESTION 5

1. Which one of the following statements about the optimal solution is correct:

Optimal solution suggests that reducing production of Market blend should increase profits

Optimal solution utilizes weekly beans availability up to its maximum

Optimal solution does not require increases in the component weekly availability

Optimal solution requires increases in the processing plant capacity