A company produces three different type of chocolates. A, B, and C. The sales volume for...

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General Management

A company produces three different type of chocolates. A, B, andC. The sales volume for A is at least 50 % of the total sales ofall three chocolates. However, the company cannot sell more than 75units of A per day. The three types of chocolate use one rawmaterial, of which the maximum daily availability is 240 lb. Theusage rates of the raw material are 2 lb per unit of A, 4 lb perunit of B, and 3 lb per unit of C. The unit prices for A, B, and C,are $20 $50 and $35, respectively.

a. Develop a mathematical model that determine the optimalproduct mix for the company.

b. Solve it using software and show the results.

c. If available raw material is increased by 120 lb, determinethe change in total revenue using the result in question babove.

d. Determine the effect of increasing or decreasing the maximumdemand for product A by 10 units.

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