The Sonoma Apple Products Companypurchases apples from local growers and makes applesauce
and apple juice. It costs $0.80 toproduce a jar of applesauce and $0.60 to produce a bottle of
apple juice. The company has a policythat at least 20 percent but no more than 60 percent of its
output must be applesauce.
The company wants to meet but notexceed the demand for each product. The marketing manager
estimates that the demand forapplesauce is a maximum of 5,000 jars, plus an additional 3 jarsfor
each $1 spent on advertising forapplesauce. The maximum demand for apple juice is estimated
to
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