The Owner of the Health JuiceBar Wishes to Prepare a Low-Calorie

question 54

Essay

The owner of the Health JuiceBar wishes to prepare a low-calorie fruit juice with a high vitamin A and vitamin C content by blending orange juice and pink grapefruit juice. Each glass of the blended juice is to contain at least 1,610 International Units (IU) of vitamin A and 194 IU of vitamin C. One ounce of orange juice contains 70 IU of vitamin A, 14 IU of vitamin C, and 13 calories; each ounce of pink grapefruit juice contains 140 IU of vitamin A, 12 IU of vitamin C, and 12 calories. How many ounces of each juice should a glass of the blend contain if it is to meet the minimum vitamin requirements while containing a minimum number of calories?
__________ ounces of orange juice
__________ ounces of pink grapefruit juice
__________ calories

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Definitions:

Capital Structure

Refers to the mix of debt and equity financing a company uses to fund its operations and growth.

WACC

The Weighted Average Cost of Capital, a calculation of a firm's cost of capital that weighs each category of capital proportionately.

After Taxes

The net amount remaining following the deduction of all applicable taxes, often used to assess the true profitability of a business activity or investment after federal, state, and other taxes have been considered.

Beta Coefficient

A gauge for assessing the risk or fluctuation level of a security or portfolio in relation to the entire market.