A Manufacturer of Nutritional Products Is Formulating a New Liquid

question 24

Essay

A manufacturer of nutritional products is formulating a new liquid vitamin supplement. A bottle of the new product must contain at least 30 units of vitamin B and 50 units of vitamin C. A unit of vegetable extract (V) contains 1.2 units of vitamin B and .8 units of vitamin C. A unit of fruit extract (F) contains .25 units of vitamin B and 1.8 units of vitamin C. The cost of vegetable extract is $.05 per unit and fruit extract costs $.06 per unit. The firm's goal is to minimize its cost per bottle. Formulate a linear programming problem for the firm.

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Definitions:

Working Capital Form

A calculation method to determine a company's operational liquidity by subtracting current liabilities from current assets.

Financial Position Form

A statement or report detailing a company's financial standing at a particular point in time, including its assets, liabilities, and equity.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, demonstrating its financial position.

Descriptive Statement

A statement providing detailed information or explanations about a subject to convey understanding or clarify meaning.