Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chocolate Delight Company (CDC) makes specially chocolates. It can produce 40 pieces per hour. The firm imate that the variable cont of producing chocolates 30

image text in transcribed
Chocolate Delight Company (CDC) makes specially chocolates. It can produce 40 pieces per hour. The firm imate that the variable cont of producing chocolates 30 35 per pod each piece sells for $0.60 Smiles for AB (SFA) is a large greeting card company that has asked CDC to produce a special fet chocolate greeting card for them. FA will pay $2.50 for each chocolate cand. The conte manufacture the new card will be $1.80 each. If this order is accepted, CDC will have to buy a new machine of a cost of $12,000. The new machine will be able to produce 20 cards per hour SFA offers to buy 70,000 cards. CDC has a capacity of 10,000 machine hours available for both the new chocolate card and sing production, and feed cost of 600.000 for a regul production activity Required: a. Assume the demand CDC's own chocolates is 250,000 pieces. SFA says that the chocolate card order has to be produselor not at all. Should CDC ccept the speciales marks) b. Assume the demand for CDC's own chocolates is 300.000 pieces. SFA says that the chocolate card onder has to be ter na ww. thoud CDG e special order? What other considerations should CDC keep in mind? (5 marks) c. Assume the demand for COC's own chocolates is 275.000 pinces, and CDC can decide to accept any quently of the a card order. What mix of chocolates and carts should CDC produce (5 marks) Font Supe XX ME Preu ALTO wa Save History MacBook Air

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

Financial Accounting

Authors: Tony Davies, Ian Crawford

1st Edition

0273723073, 9780273723073

More Books

Students also viewed these Accounting questions