Exhibit 3-1
a Winemaker in California's Napa Valley Must Decide

question 14

Essay

Exhibit 3-1
A winemaker in California's Napa Valley must decide how much of two types of wine she will produce from a particular variety of grapes. Each liter of table wine yields $8 profit, while each liter of dessert wine produces $3 profit. The labor hours and bottling process time used for type of wine are given in the table below. Resources available include 200 labor hours and 80 hours of bottling process time. Assume the winemaker has more than enough grapes available to supply any feasible production plan.
$$\begin{array} { | l l l | } \hline & \text { Table } & \text { Dessert } \\\hline \text { Labor (Hours) } & 0.20 & 0.60 \\\text { Process Time (Hours) } & 0.30 & 0.10 \\\hline\end{array}$$ ​
-[Part 5] Refer to Exhibit 3-1.Suppose the winemaker can obtain 100 addition labor hours.Can you use the sensitivity analysis obtained for Part 4 to determine her expected profit
Would her bottling plan change
Explain your answer.

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Definitions:

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Characterizing a lack of active response or action, often allowing others to dictate situations or outcomes.

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