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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A body of economic thought and theory that is widely accepted and practiced by economists and policy makers, characterized by a focus on markets, efficiency, and equilibrium.

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The power vested in managers to make decisions and direct subordinates in the organization to achieve company objectives.