Lost Maples Winery Makes Three Varieties of Contemporary Constellation Country

question 7

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.
$$\begin{array} { | l | c | c | c | c | c | } \hline & \begin{array} { c } \text { Grapes } \\\text { Variety A } \\\text { bushels }\end{array} & \begin{array} { c } \text { Grapes } \\\text { Variety B } \\\text { bushels }\end{array} & \begin{array} { c } \text { Sugar } \\\text { KGS }\end{array} & \begin{array} { c } \text { Labour (man- } \\\text { hours) }\end{array} & \begin{array} { c } \text { Contrib. } \\\text { per case }\end{array} \\\hline \text { Austin Formation } & 6 & 0 & 4 & 3 & \$ 27 \\\hline \text { Ste. Genevieve } & 0 & 4 & 1 & 1 & \$ 28 \\\hline \text { Los Alamos } & 2 & 1 & 2 & 2 & \$ 23 \\\hline\end{array}$$ The winery has 3000 bushels of Variety A grapes, 2280 bushels of Variety B grapes, 1000 pounds of sugar, and 1400 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. Is there any sugar left over? If so, how much?

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Definitions:

Export Quota

A government-imposed limit on the quantity of a specific good that can be exported over a given period, used to control trade balances.

Domestic Consumption

This term refers to the total amount of goods and services consumed within a country's borders, indicating the level of domestic demand.

Tariff

A tax imposed by a government on imported or exported goods.

Protected

Shielded from harm, damage, or unwanted access, often through legal or regulatory means.