Question

C-town brewery brews two beers: Expansion Draft and Burning River. Expansion draft sells for $15 per barrel while Burning River sells for $5 per barrel. Producing a barrel of Expansion Draft takes 6 pounds of corn and 2 pounds of hops. Producing a barrel of Burning River requires 6 pounds of corn, 6 pounds of rice, and 2 pounds of hops. The brewery has 720 pounds of corn, 500 pounds of rice, and 530 pounds of hops.

Assuming a linear relationship, use the Excel Solver to determine the optimal mix of Expansion Draft and Burning River that maximizes C-town's revenue. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.)

Decision for expansion draft
Decision for burning river
Total sales	$

	Resources Used
Corn
Rice
Hops

Answer 1

Solution:

Since there is no constraint as to how many barrels need to be produced for each type of beer, we can even decide not to produce a particular type of beer of revenue maximization.

Hence,

We produce 120 barrels of the Expansion draft and 0 barrels of Burning River.

Total Sales would be 1800 dollars.

The material used will be as per given in the image below.

For a more realistic solution, there should be a constraint on the number of barrels of beer that need to be produced for each type. Since there is no limit, in this case, it becomes easy for calculation but does not carry any business sense.