A Producer of Two Types of Fine Chocolate Bars Utilizes

Essay

A producer of two types of fine chocolate bars utilizes four basic ingredients: milk, sugar, cocoa, and almonds. The milk bar (M) requires 8 ounces of milk, 2 ounces of sugar, and 3 ounces of cocoa. The almond bar (A) requires 5 ounces of milk, 1.5 ounces of sugar, 2.5 ounces of cocoa, and 2 ounces of almonds. The profit contribution of each bar is $.50. The daily availability of the ingredients is limited up to 5,000 ounces of milk, 1,200 ounces of sugar, 2,000 ounces of cocoa, and 1,000 ounces of almonds.
(a) Formulate and solve the producer's linear programming problem.
(b) What can be concluded about the shadow prices of milk and sugar?