Business, 30.03.2021 22:10 eddie6242

A small candy shop is preparing for the holiday season. The owner must decide how many bags of deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix has 2/3 pound raisins and 1/3 pound peanuts, and the standard mix has 1/2 pound raisins and 1/2 pound peanuts per bag. The shop has 90 pounds of raisins and 60 pounds of peanuts to work with. Peanuts cost $.60 per pound and raisins cost $1.50 per pound. The deluxe mix will sell for $2.90 per pound, and the standard mix will sell for $2.55 per pound. The owner estimates that no more than 110 bags of one type can be sold.
1. If the goal is to maximize profits, how many bags of each type should be prepared? What is the expected profit?
2. If the selling price of the deluxe bags increased by $0.30 (to $3.20), would the optimal mix change? What would the total profit?
3. If the selling price of the standard bags decreased by $0.30 (to $2.25, would the optimal mix change? What would the total profit?
4. Would you be willing to purchase an additional 20 pounds of raisins for one dollar per pound (total cost of $20)? Why or why not? What would the new optimal solution be?

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 03:30

Joe finally found a house for sale that he liked. which factor could increase the price of the house he likes? a. both he and the seller each have a real estate agent. b. a home inspector finds faulty wiring in the house. c. the house has been for sale for almost a year. d. several buyers all want that same house.

Answers: 2

Answer

Business, 22.06.2019 07:00

What is the state tax rate for a resident of arizona whose annual taxable income is $18,000?

Answers: 1

Answer

Business, 22.06.2019 09:00

You speak to a business owner that is taking in almost $2000 in revenue each month. the owner still says that they are having trouble keeping the doors open. how can that be possible? use the terms of revenue, expenses and profit/loss in your answer

Answers: 3

Answer

Business, 22.06.2019 11:20

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.

Answers: 3

Answer

You know the right answer?

A small candy shop is preparing for the holiday season. The owner must decide how many bags of delux...

Questions