Rienzi Farms Grows Sugar Cane and Soybeans on Its 500

question 51

Essay

Rienzi Farms grows sugar cane and soybeans on its 500 acres of land.An acre of soybeans brings a $1000 contribution to overhead and profit;an acre of sugar cane has a contribution of $2000.Because of a government program no more than 200 acres may be planted in soybeans.During the planting season 1200 hours of planting time will be available.Each acre of soybeans requires 2 hours,while each acre of sugar cane requires 5 hours.The company seeks maximum contribution (profit)from its planting decision.
a.Algebraically state the decision variables,objective and constraints.
b.Plot the constraints
c.Solve graphically,using the corner-point method.

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Definitions:

Change In Income

The difference in an individual's or household's income over a specific period, indicating an increase or decrease.

Demand

The desire for a particular product or service combined with the ability and willingness to pay for it.

Complementary Goods

Complementary Goods are products or services that are often used together, where the demand for one increases the demand for the other, like smartphones and data plans.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded at those prices.