Lost Maples Winery Makes Three Varieties of Contemporary Constellation Country

question 43

Essay

Lost Maples Winery makes three varieties of contemporary Constellation Country wines: Austin (a fine red), Ste. George (a table white), and Los Alamos (a hearty pink Zinfandel). The raw materials, labour, and contribution per case of each of these wines is summarized below.
$$\begin{array} { | l | c | c | c | c | c | } \hline & \begin{array} { c } \text { Grapes } \\\text { Variety A A } \\\text { bushels }\end{array} & \begin{array} { c } \text { Variety B } \\\text { bushels }\end{array} & \begin{array} { c } \text { Sugar } \\\text { KGS }\end{array} & \begin{array} { c } \text { Labour (man- } \\\text { hours) }\end{array} & \begin{array} { c } \text { Contrib. } \\\text { per case }\end{array} \\\hline \text { Austin Formation } & 5 & 0 & 2.5 & 3.25 & \$ 28.50 \\\hline \text { Ste. Genevieve } & 0 & 4 & 1.5 & 2.5 & \$ 31 \\\hline \text { Los Alamos } & 2 & 1 & 2 & 2 & \$ 23 \\\hline\end{array}$$ The winery has 4000 bushels of Variety A grapes, 2800 bushels of Variety B grapes, 1500 pounds of sugar, and 1600 man-hours of labour available during the next week. The firm operates to achieve maximum contribution. Refer to the POM for Windows panels showing the solution to this problem.
Answer the following questions.
a. For maximum contribution, how much of each wine should be produced?
b. How much contribution will be made by selling the output?
c. If you could increase any constraint by one unit, which one would it be and why?

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Definitions:

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that governs the sale of goods between parties in different nations.

Passing of Title

Passing of title refers to the legal process in which ownership of property or goods is transferred from one party to another.

Article 2

in the context of the UCC, governs the sale of goods and provides guidelines for contracts involving the transfer of goods from sellers to buyers.

Chinese Law

The legal system that governs the People's Republic of China, characterized by a combination of statutory law and custom.