Exhibit 4-4 A Company Blends Nitrogen and Phosphorous to Produce Two Types

Essay

Exhibit 4-4
A company blends nitrogen and phosphorous to produce two types of fertilizers. Fertilizer 1 must be at least 50% nitrogen and sells for $55 per pound. Fertilizer 2 must be at least 55% phosphorous and sells for $45 per pound. The company can purchase up to 9000 pounds of nitrogen at $20 per pound and up to 12,000 pounds of phosphorous at $12 per pound.
-Refer to Exhibit 4-4.Suppose the company could acquire 1,000 pounds more of either nitrogen or phosphorous.Which should it choose
What would be the resulting impact on profit