Answer:
They would produce 14,400 packages of zetsy and the regular profit making would be $11,340.
Step-by-step explanation:
12-ounce
regular = 65%
mild = 35%
extra sharp zesty blend = 75%
extra sharp mild = 25%
8,100 mild for = $1.30
3,500 extra sharp = $1.50
cost blend and package = $0.30
regular sold = $1.8
zesty = $2.10
first we calculate the cost of each product
conversion Of ounces to pounds:
1 pound = 16 ounces
regular cost:
12/16 pounds x 65% mild x $1.30
= 0.63375
12/16 pounds x 35% sharp x $1.50
= 0.39375
+ blend and package $0.30
total = $1.3275
contribution: $1.8 – $1.3275
= $0,4725
zesty cost:
12/16 pounds x 75% mild x $1.30
= 0.73125
12/16 pounds x 25% sharp x $1.50
= 0.28125
+ blend and package 0.30
total $1,3125
contribution: $2.10 – $1.3125
= $0,7875
to maximize profit:
profit = $0.4725Regular + $0.7875zetzy
adding the constraint:
mild = Regular x $0.4775 + Zetzy x $0.5625 = 8,100
and
sharp = Regular x $0.2625 + Zetzy x $0.1875 = 3,100
contribution generated by each product/pound:
Regular Zesty
CM $ 0.47250 $ 0.47250
Constrain resource
( pounds of mild) 0.48750 0.56250
CM per constrain $ 0.9692 $ 1.4000
Constrain resource
( pounds of sharp) 0.26250 0.18750
CM per constrain $ 1.80 $ 4.20
As zesty is better we produce as much as we can:
8,100 pounts / 0.5625 per cheese spreads: 14,400
check for possibilities of other constraint:
14,400 zesty packages x 0.1875 pounds each = 2,700 pounds
because it’s possible we only produce zetsy
profit = $0.4725 (0) + $0.7875 (14,400)
profit = $ 11,340
