31 Dec New Age Pharmaceuticals Cost/lb of chemicals
New Age Pharmaceuticals produces the drug NasaMist from four chemicals. Today, the company must produce 1000 pounds of the drug. The three active ingredients in NasaMist are A, B and C. By weight, at least 8% of NasaMist must consist of A, at least 4% of B, and at least 2% of C. The cost per pound of each chemical and the amount of each active ingredient in one pound of each chemical are given. At leasat 100 pounds of chemical 2 must be used.
a. Determine the cheapest way of producing today’s bath of NasaMist.
b. Use SolverTable to see how much the percentage of requirement of A is really costing New Age. Let the percentage required vary from 6% to 12%.
New Age Pharmaceuticals
Cost/lb of chemicals
Chemical 1 $8
Chemical 2 $10
Chemical 3 $11
Chemical 4 $14
Ingredient/lb of chemical
A B C
Chemical 1 0.03 0.02 0.01
Chemical 2 0.06 0.04 0.01
Chemical 3 0.10 0.03 0.04
Chemical 4 0.12 0.09 0.04
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