Question

Your client has inherited a failing soda pop business from her recently deceased uncle. Your client is in the process of trying to overhaul the business. The first step is understanding the cost of making a batch of the soda pop. You have estimated the cost in dollars to produce a batch of the soda pop as

?(?,?)=2200+27?^3 −72??+8?^2

Where x is the number of kilograms of sugar added to each batch and y is the number of grams of flavoring per batch. Please help your client identify the quantities of sugar and flavoring that minimize the cost of producing a batch of the soda pop. What is the minimum cost?

After identifying the relationship between inputs and costs for your client, what would you advise as the next steps for assessing the business? Please advise your client.

Answer 1