Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Butterbisk Ltd sells wholesale pack of their two types of malt biscuits, Traditional & Premium, they make a profit of 10 per pack of Traditional

image text in transcribed

image text in transcribed

Butterbisk Ltd sells wholesale pack of their two types of malt biscuits, Traditional & Premium, they make a profit of 10 per pack of Traditional biscuits and 25 per pack of Premium biscuits. Each pack of Traditional biscuits requires 4 units of materials, 3 units of oven time and 2 units of labour and each pack of Premium biscuits requires 3 units of materials, 2 unit of oven time and 3 units of labour. The resources available are 500 units of materials, 300 units of oven time and 400 units of labour. The production manager initially considers 3 possible production plans. One possible production plan is to produce 75 packs of Traditional biscuits and 75 packs of Premium biscuits. a. What is the total profit? (1 mark) b. How many units of material are required? (1 mark) C. How many units of oven time are required? (1 mark) d. How many units of labour are required? (1 mark) A second possible production plan is to produce 100 packs of Traditional biscuits and 75 packs of Premium biscuits. e. What is the total profit? (1 mark) f. How many units of material are required? (1 mark) How many units of oven time are required? (1 mark) h. How many units of labour are required? (1 mark) A third possible production plan is to produce 50 packs of Traditional biscuits and 75 packs of Premium biscuits. i. What is the total profit? (1 mark) j. How many units of material are required? (1 mark) k. How many units of oven time are required? (1 mark) 1. How many units of labour are required? (1 mark) m. Of the above three possible production plans which, if any, are possible within the associated constraints and why? (1 mark) Now, using the above resource requirements and 300 units of oven time and 400 units of labour as associated constraints, material constraint is no longer used. Formulate mathematically or otherwise to: n. Calculate the optimum number of packs of Traditional biscuits and packs of Premium biscuits.to be produced to maximise profits? (5 marks) 0. What is the total profit? (5 marks) p. Identify the amount utilised for any of the above 2 resources, if any, which have NOT fully utilised all the available units? (2 marks) (25 marks) Total_(100 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Auditing SAP S 4HANA

Authors: Steve Biskie

1st Edition

1493222643, 978-1493222643

More Books

Students also viewed these Accounting questions