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topgradehub topgradehub
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3 years ago
Table 3.6 Taco Loco
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:



What is the increase in revenue if Taco Loco purchases 20 pounds of cheese for $1 and uses it optimally?

• $0

• $9.09

• $29.00

• $158.18
Textbook 

Introduction to Management Science


Edition: 13th
Author:
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s0073123s0073123
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3 years ago
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