A small candy shop is preparing for the holiday season. Theowner must decide how many bags of deluxe mix and how many bags ofstandard mix of Peanut/Raisin Delite to put up. The deluxe mix has.67 pound raisins and .33 pound peanuts, and the standard mix has.55 pound raisins and .45 pound peanuts per bag. The shop has 80pounds of raisins and 65 pounds of peanuts to work with.
Peanuts cost $.65 per pound and raisins cost $1.60 per pound. Thedeluxe mix will sell for $2.70 per pound, and the standard mix willsell for $2.60 per pound. The owner estimates that no more than 125bags of one type can be sold.
a. If the goal is to maximize profits, how many bags ofeach type should be prepared? Use Excel Solver. (Roundintermediate cost calculations to 2 decimal places and round youranswers to the nearest whole number.)
b. What is the expected profit? Use Excel Solver.(Enter your answer based on the unrounded (not rounded)decision variable values from Part a. Round your answer to thenearest whole number. Omit the "$" sign in yourresponse.)
Profit $
