Cocoa, a key ingredient in manufacturing chocolate, will not be high enough to meet our growing demand. We have to limit the production of the winter seasonal collection to our top sellingproducts."

Production process

WemouldthechocolateintoSantafigures forthewinter seasonalcollection

Instead of shaping all of the chocolate we use some of the chocolate batch to manufacture other seasonal items as part of the winter seasonal collection. One of our popular winter collection items is chocolate bark, which is a sheet of chocolate topped with nuts and candy cane pieces. Next, we have our marshmallow snowmen. Finally, we have chocolate covered pretzels. Below is the summarized the key data for you

Constraint on the amount of cocoa

We have enough cocoa supply to produce our top selling winter seasonal collection items but not our full winter seasonal collection line. Let me explain our production process. We first make a batch of chocolate. We spent $50,000 last year to produce our entire chocolate batch. The batch of chocolate can then be shaped and sold as is."

Chocolate Santas

We sell each 250 gram (g) chocolate Santa for $2.50. During 2022, we sold 12,000 chocolate Santas.

To produce 1 unit of chocolate bark, 1 package of marshmallow snowmen, or 1 bag of chocolate covered pretzels, 250g of chocolate can be used.

Chocolate Bark

We sell275gofchocolatebarkfor$8.50.Theadditionalprocessingcostswere$57,800.During 2022, we sold 2,598,750g of chocolatebark.

Marshmallow Snowmen

We sell a 4-pack of marshmallow snowmen for $6.00. The additional processing costs were

14,000. During 2022, we sold 21,600 marshmallow snowmen.

Chocolate Pretzels

We sell a 450g bag of chocolate covered pretzels for $5.50. The additional processing costs were $11,000. During 2022, GCI sold 1,640,250g of chocolate covered pretzels.

Determine which item to produce.