1. |
Corn (lbs) |
Hops (ozs) |
Malt (lbs) |
Profit (euros) |
Situation 1 |
If Produces 30 barrels of Yol's Red Beer then Yol's white beer cannotbe produced as Malt will all be consumed by Yol's Ref beer, |
Profit = Euro 30 * 30 barrels = Euros 900 |
Situation 2 |
If Produces 25 barrels of Yol's White and 10 barrels of Yol's Red beer, |
Profit = Euro 20 * 25 + euro 30 * 10 = Euros 800 |
Hence , to maximize profit company should produced only 30 barrels of Yol's red beer |
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