Profit Maximization: Soft Drinks
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The production manager for the Softy soft drink company is considering the production of 2 kinds of soft drinks: regular and diet. Two of her resources are production time (8 hours = 480 minutes per day) and syrup (1 of the ingredients) limited to 675 gallons per day. To produce a regular case requires 2 minutes and 5 gallons of syrup, while a diet case needs 4 minutes and 3 gallons of syrup. Profits for regular soft drink are $3.00 per case and profits for a diet soft drink are $2.00 per case. What are the optimal production quantities for each type of soft drink? What is the optimal daily profit?
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This solution is comprised of a concise response illustrating how to solve for a 2 variable profit maximization problem. All calculations are presented in a chart format.
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x y Slack
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