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Question 2 A company would like to produce and sell two different types of alcoholic...

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Question 2 A company would like to produce and sell two different types of alcoholic mixed drink, one called FC and a second one called SD. Both are using a blend of different qualities of tequila (silver, gold) and a fizzy drink. The company has a stock of 2100 gallons of silver tequila, 2300 gallons of gold tequila and 3250 gallons of fizzy drink. Their costs are 7, 9 and 3 GBP per gallon, respectively. FC contains 30% of silver tequila, 10% of gold tequila and 60% of the fizzy drink, while SD has 5% silver tequila, 15% gold tequila and 80% of the fizzy drink. The mixed drinks retail at 6 GBP per gallon for FC and 4.5 GBP per gallon for SD. (i) Formulate this problem as an optimisation model, so that its solution will inform the company about the production plan to maximise its profit. (N.B.: You are not required to solve the problem. [16 marks] (ii) Two retailers are interested in the company's drinks. The first retailer would like to purchase 1500 gallons of SD but is not interested in FC, while the second retailer would like to buy 1200 gallons of FC and 200 gallons of SD. Which of the two contracts is more profitable for the company? [4 marks]

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