Witchs brew company manufactures and sells three potions that all use gargoyle
admin / July 3, 2018
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Witchs brew company manufactures and sells three potions that all use gargoyle eyelashes as an Witch As an ingredient. The high demand for all three of these
potions exceeds the supply of gargoyle eyelashes that witches brew is able to buy from its supplier. Information is as follows:
Beauty potion: selling price $100 variable cost per bottle 70 Eyelashes required Per bottle 2 sales demand in units 1 000.
Luck potion: selling price 120 vc per bottle 84 eyelashes required 3 sales demand in units 1 500
Smart potion: selling price 200 vc per bottle 130 eyelashes 5 Sales demand 1800
A) how many eyelashes would be required to satisfy demand for all 3 products?
B) each year witches brew is only able to buy 14000 gargoyle eyelashes. Using only the information above basing the decision solely on maximizing net
operating income how many bottles if any of each potion should witches bre make?
C) a new supplier is found that has eyelashes available to sell. How many eyelashes would witches brew need to purchase? What is the maximum amount witches
brew would be willing to pay per eyelash? Assume the normal cost of an eyelash is $10
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