Taco Loco is considering a new addition to their menu. They have test marketed a number of possibilities and narrowed them down to three new products, X, Y, and Z. Each of these products is made from a different combination of beef, beans, and cheese, and each product has a price point. Taco Loco feels they can sell an X for $17, a Y for $13, and a Z for $14. The company's management science consultant formulates the following linear programming model for company management.
Max R = 14Z + 13Y + 17X
subject to:
Beef 2Z + 3Y + 4X ? 28
Cheese 9Z + 8Y + 11X ? 80
Beans 4Z + 4Y + 2X ? 68
X,Y,Z ? 0
The sensitivity report from the computer model reads as follows:
-The local cheese vendor offers to sell Taco Loco 200 pounds of cheese for these three products. Taco Loco should
A) refuse to buy any cheese.
B) buy less than 80 pounds of cheese for $1.45 per pound.
C) buy 46 pounds or less of cheese for $1.45 or less.
D) buy at least 126 pounds of cheese for $5.33 or less.
Correct Answer:
Verified
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