Customers buy 10 units of regular beer and 16 units of light
beer monthly. The brewery decides to produce extra beer, beyond
that needed to satisfy the customers. The cost per unit of regular
beer is $28,000 and the cost per unit of light beer is $46,000.
Every unit of regular beer brings in $250,000 in revenue, while
every unit of light beer brings in $500,000 in revenue. The
brewery wants at least $20,000,000 in revenue. At least 29
additional units of beer can be sold. Complete parts (a) and
(b).
(a) How much of each type of beer should be made so as to
minimize total production costs?
Let y1 represent units of regular beer and y2 represent units of
light beer. Find the objective function, w, used to minimize
production costs.
w = ___ y1+___ y2
b) Suppose the minimum revenue is increased to _______.
Use shadow costs to calculate the new minimal production
costs.