34. Caroline manufactures pillar candles in three sizes, which she sells directly from a website. Sixinch candles

Question:

34. Caroline manufactures pillar candles in three sizes, which she sells directly from a website. Sixinch candles require 1 pound of wax, 0.5 ounce of fragrance, and 8 inches of wick. Nine-inch candles require 1.5 pounds of wax, 0.75 ounce of fragrance, and 11 inches of wick. Twelve-inch candles require 2 pounds of wax, 1 ounce of fragrance, and 14 inches of wick. Wax costs $1.50 per pound, fragrance costs $2.50 per ounce, and wicks cost $0.25 per yard (there are 36 inches in a yard). Caroline likes to have 20% of the next month’s projected production needs on hand in all ending raw materials inventories. Six-inch candles sell for $18 each plus tax and shipping, nine-inch candles sell for $25 each plus tax and shipping, and twelve-inch candles sell for $30 each plus tax and shipping. Caroline can make a batch of 100 six-inch candles in 2 hours, 50 nine-inch candles in 2.5 hours, or 40 twelve-inch candles in 3 hours. Caroline is the only worker, and she pays herself $20 per hour for her manufacturing time. Caroline pays $500 per month for manufacturing space, $100 per month for utilities in the manufacturing space, $100 per month for supplies and depreciation on molds and other equipment, and $0.25 per pound of wax used for heating. She pays $100 per month for website access and design, $200 per month for office rent, $100 per month for office supplies and equipment depreciation, and $0.20 per click for a pay-per-click advertising campaign. Caroline estimates that 1 in 10 clicks generates a candle sale. Caroline also pays herself $10 per hour for office time, and she works about 40 hours per month in the office. Caroline likes to keep 10% of the next month’s projected sales needs on hand in all ending finished goods inventories. The total value of ending finished goods inventories for July is $192.64. Planned sales for the next 3 months are as follows:

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