Jim's Winery Blends Fine Wines for Local Restaurants

question 29

Essay

Jim's winery blends fine wines for local restaurants. One of his customers has requested a special blend of two burgundy wines, call them A and B. The customer wants 500 gallons of wine and it must contain at least 100 gallons of A and be at least 45% B. The customer also specified that the wine have an alcohol content of at least 12%. Wine A contains 14% alcohol while wine B contains 10%. The blend is sold for $10 per gallon. Wine A costs $4 per gallon and B costs $3 per gallon. The company wants to determine the blend that will meet the customer's requirements and maximize profit.
a.Formulate the LP model for this problem.
b.Solve the problem using the graphical method.
c.How much profit will Jim make on the order?

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Definitions:

Stock Repurchase

A financial strategy where a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

Reverse Stock Split

A corporate action that consolidates the number of existing shares of stock into fewer, proportionately more valuable, shares.

Total Equity

The sum of the ownership interest in a corporation, including common and preferred shares.

Stock Repurchase

The process by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares.