Macro farms Ltd can purchase two types of fertilizer which contain the following percentage Nitrate Phosphate Potash Type X 18 5 2 Type Y 3 2 5 For certain type of crop, the following minimum quantities (kg) are required Nitrate Phosphate Potash 100 50 40 Type X cost GHS10 per kg and type Y cost GHS5 per kg. The company currently buys 1,000 kg of each type and wishes to minimize it expenditure on fertilizers. Required 1. What is the minimum expenditure that can be incurred on fertilizer? 2. Find the savings the company can make by switching from it current policy to your recommendation.
Macro farms Ltd can purchase two types of fertilizer which contain the following percentage
Nitrate Phosphate Potash
Type X 18 5 2
Type Y 3 2 5
For certain type of crop, the following minimum quantities (kg) are required
Nitrate Phosphate Potash
100 50 40
Type X cost GHS10 per kg and type Y cost GHS5 per kg. The company currently buys 1,000 kg of each type and wishes to minimize it expenditure on fertilizers.
Required
1. What is the minimum expenditure that can be incurred on fertilizer?
2. Find the savings the company can make by switching from it current policy to your recommendation.
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