Problem 2 (20 pts) LP Modeling Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed gr

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Problem 2 20 Pts Lp Modeling Sunblessed Juice Company Sells Bags Of Oranges And Cartons Of Orange Juice Sunblessed Gr 1 (38.11 KiB) Viewed 26 times

Problem 2 (20 pts) LP Modeling Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 100,000 pounds of grade 9 oranges and 120,000 pounds of grade 6 oranges on hands. The average quality of oranges sold in bags must be at least 7, and the average quality of oranges used to produce orange juice must be 8. Each pound of oranges that is used for juice yields a revenue of $1.50 and incurs a variable cost (consisting of labor costs, variable overhead costs, inventory costs, and so on) of $1.05. Each pound of oranges sold in bags yields a revenue of $1.50 and incurs a variable cost of $0.70. Determine how suhblessed can maximize its profit. (Define the decision variables precisely to receive the full credit.) a