The Sweet Candy Company includes in its product line a number of different mixed nut products. The Chalet nut mix is required to have no more than 25 percent peanuts and no less than 40 percent almonds. The nuts available, their prices and their availabilities this month are as follows: price availabliity Peanuts 20 cents/lb. 400 lbs. Walnuts 35 cents/lb. No limit Almonds 50 cents/lb. 200 lbs. The Chalet mix sells for 90 cents per lb. At most 700 lbs. can be mixed per moth in questions (a), (b) below. a. Formulate and solve the appropriate model for this problem.
b. The company would like to incorporate into the analysis its second major mixed nut line, the Hovel line. The Hovel mix can contain no more than 60 percent peanuts and no less than 20 percent almonds. Hovel sells for 50 cents per lb. Modify your model appropriately and solve. What is the most scarce resource? By how much the profit contribution will increase if one more pound of:
(i) peanuts was available.
Similarly find if one more pound of (ii) almonds or (iii) walnuts was available.
c. Note in (b) that Hovel did not come into the optimal solution. What increase in the price of Hovel will it make it profitable? (Hint: use sensitivity analysis-objective row ranges)

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?