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Business, 10.09.2019 18:20 NathanaelLopez

Afarm grows two types of mangoes. this year the yield of mangoes of type 1 is 1000 units and that of type 2 is 700 units. the farm sells all of its mangoes. the mangoes can be sold to a retail company and can also be sold in a local market directly. the contract with the retail company has the following details: (a) at least 60% of the total amount of mangoes sold to the retail company must be of type 2.(b) the retail company has a demand of 1000 units of mangoes and pays $3 per unit for both types of mangoes.(c) it is possible to sell less than the demand to the retail company: if the total amount of mangoes sold to the retail company is less than 1000 units, then there is a penalty of $0.05 per unit shortfall from 1000 units. (for example, if the farm decides to sell 900 units of mangos to the retail company, then the farm earns 900∗3−(1000−900)∗0.05)(d) it is possible to sell more than the demand to the retail company. however if the number of units of mangoes is more than 1200, then each unit over the first 1200 units is purchased by the retal store at the rate of $2.5 per unit. (for example, if the farm decides to sell 1300 units of mangos to the retail company, then the farm earns 1200∗3 + (1300−1200)∗2.5 )mangoes of type 1 sell at $2.2 per unit in the local market and mangoes of type 2 sell for $3.1 per unit in the local market. any amount of mangoes can be sold in the local market. formulate a linear program to maximize the net revenue of the farm.

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