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Business, 17.09.2019 18:30 jaemitchell23

Problem 8-29 (algorithmic) la jolla beverage products is considering producing a wine cooler that would be a blend of a white wine, a rose wine, and fruit juice. to meet taste specifications, the wine cooler must consist of at least 50% white wine, at least 20% and no more than 30% rose, and exactly 20% fruit juice. la jolla purchases the wine from local wineries and the fruit juice from a processing plant in san francisco. for the current production period, 9000 gallons of white wine and 7500 gallons of rose wine can be purchased; an unlimited amount of fruit juice can be ordered. the costs for the wine are $1 per gallon for the white and $1.5 per gallon for the rose; the fruit juice can be purchased for $0.5 per gallon. la jolla beverage products can sell all of the wine cooler it can produce for $3 per gallon. interpret the shadow price for the constraint corresponding to the requirement that the wine cooler must contain at least 50% white wine. what is your advice to management given this shadow price? the input in the box below will not be graded, but may be reviewed and considered by your instructor.

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