A retired couple supplement their income by making fruit pies, which they sell to a local grocery store. During the month of September, they produce apple and grape pies. The apple pies are sold for $1.50 to the grocer, and the grape pies are sold for $1.20. The couple is able to sell all of the pies they produce owing to their high quality. They use fresh ingredients. Flour and sugar are purchased once each month. For the month of September, they have 1,200 cups of sugar and 2,100 cups of flour. Each apple pie requires 1½ cups of sugar and 3 cups of flour, and each grape pie requires 2 cups of sugar and 3 cups of flour.
Determine the number of grape and the number of apple pies that will maximize revenues if the couple working together can make an apple pie in six minutes and a grape pie in three minutes. They plan to work no more than 60 hours.
SOLVE USING SOLVER: Save the Answer and Sensitivity Reports to Answer the following questions:
Currently you recommend that they produce both Apple and Grape pies. If the profit for each grape pie was $1.40 (instead of $1.20), would you continue to make both pies? What would the production mix be? What would the total profit be?
Would you be willing to purchase an additional 25 cups of sugar for one dollar per pound? Why or why not? What would the new optimal solution be?
If 100 cups of flour were contaminated, would this affect your optimal production mix? (Yes or No) How would this effect the total profit?
Would you be willing to hire a temp employee for $10 per hour? Why or why not?