Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Al-Marai Inc. produces various Traditional food products and sells them to Al-Ameen Group, a chain of grocery stores located in Bahrain and Saudi Arabia. Al-Marai,

Al-Marai Inc. produces various Traditional food products and sells them to Al-Ameen Group, a chain of grocery stores located in Bahrain and Saudi Arabia. Al-Marai, Inc. makes two pickle (Ajaar) products: Indian style pickle and Bahraini style pickle in their two main production units AL-Hidd Production Units - with capacity of 800 units and Salmabad Production Unit with capacity of 1200 units. Essentially, the two products have different blends of whole tomatoes, mango nectar, and whole lemons. The Bahraini style pickle is a blend of 60% whole tomatoes, 40% mango nectar, and 21% whole lemon. The Indian style pickle, which has a thicker and chunkier consistency, consists of 82% whole tomatoes, 65% mango nectar, and 12% whole lemon. Each jar of pickle produces weighs 32 ounces. For the current production period Al-Marai Inc. can purchase up to 550 pounds of whole tomatoes, 300 pounds of mango nectar, and 145 pounds of whole lemon. The price per pound for these ingredients is SAR9.5, SAR 12.5, and SAR 4.0 respectively. The cost of the spices and the other ingredients is approximately SAR 3.5 per jar. Al-Marai buys empty glass jars for SAR 0.25, and labeling and filling costs are estimated to be SAR 0.5 for each jar of pickle produced. Al-Marai contract with Al-Ameen group results in sales revenue of SAR 12.5 for each jar of Indian style pickle and SAR 14.5 for each jar of Bahraini style pickle. To maximize the profit how many of the jars of Indian style pickle and Bahraini style pickle should be produced.

The numbers are correct, I want the solution in Excel, please

Step by Step Solution

3.44 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

Al Marai Inc ALHidd production unit Salmabad 14 60 T 40 M 21X L Indian Pickle 821 T 65... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantitative Methods For Business

Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam

11th Edition

978-0324651812, 324651813, 978-0324651751

More Books

Students also viewed these Accounting questions

Question

Did I allow myself adequate time to generate options?

Answered: 1 week ago