Answer:
It will produce 14,400 packages of zesty and non opf the regular making a profit of $ 11,340
Explanation:
12-ounce
regular 65% mild 35% extra sharp
zesty blend 75% mild 25% extra sharp
8,100 mild for 1.30
3,500 extra sharp 1.50
cost blend and package 0.30
regular sold at 1.8
zesty at 2.10
We should calcualte the cost of each product and get the contribution per unit:
conversion between ounces and 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
We want to maximize profit:
profit = 0.4725Regular + 0.7875zetzy
With the constrain:
mild = Regular x 0.4775 + Zetzy x 0.5625 = 8,100
and
sharp = Regular x 0.2625 + Zetzy x 0.1875 = 3,100
contribution generate per product and per 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
we check if it is possible with the other constrain:
14,400 zesty packages x 0.1875 pounds each = 2,700 pounds
it is possible therefore we only produce zesty
profit = 0.4725 (0) + 0.7875 (14,400)
profit = $ 11,340
