Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Daisy Simpson, Inc., sells two popular brands of cookies: Daisy's Delight and Brianna's Bourbon. Daisy's Delight goes through the Mixing and Baking departments, and

image text in transcribedimage text in transcribedimage text in transcribed

Daisy Simpson, Inc., sells two popular brands of cookies: Daisy's Delight and Brianna's Bourbon. Daisy's Delight goes through the Mixing and Baking departments, and Brianna's Bourbon, a filled cookie, goes through the Mixing, Filling, and Baking departments. Michael Shirra, vice president for sales, believes that at the current price, Daisy Simpson can sell all of its daily production of Daisy's Delight and Brianna's Bourbon. Both cookies are made in batches of 3,200. (Click the icon to view the time required per batch and the total time available.) (Click the icon to view the revenue and cost data.) Read the requirements. Requirement 1. Using D to represent the batches of Daisy's Delight and B to represent the batches of Brianna's Bourbon made and sold each day, formulate Shirra's decision as an LP model. Begin by determining the linear function. Total contribution margin Next specify the constraints for each department. (If an input field is not used in the table, leave the input field empty; do not select a constraint.) Mixing Department: Filling Department: Baking Department: + Requirement 2. Compute the optimal number of batches of each type of cookie that Daisy Simpson, Inc., should make and sell each day to maximize operating income. Calculate the total contribution margin for each corner point, then we can select the optimal number of batches. (For trials with a $0 balance, make sure to enter "0" in the appropriate field.) Total Trial Corner (D,B) Contribution Margin 1 (0,0) 2 (20,0) 3 (14,11) 4 5 (6,15) (0,15) Select the corner point that represents the optimal number of batches of each type of cookie, to maximize operating income. Corner (D,B) = Data table Data table B Revenue and cost data for each type of cookie are as follows: A In each department, the time required per batch and the total time available each day are as follows: Daisy's Brianna's B Delight Bourbon 1 1 Revenue per batch $ 425 $ 350 2 Mixing Department Minutes Filling Baking 2 Variable cost per batch 150 125 3 Daisy's Delight 33 9 3 Contribution margin per batch 275 $ 225 4 Brianna's Bourbon 18 18 18 Monthly fixed costs (allocated to 4 each product) $ 18,550 $ 22,250 5 Total available per day 660 270 324 Print Done Print Done

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

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0073379616, 73379611, 978-0697789938

More Books

Students also viewed these Accounting questions

Question

Why is customer retention important in relationship marketing?

Answered: 1 week ago

Question

What is meant by formal organisation ?

Answered: 1 week ago

Question

What is meant by staff authority ?

Answered: 1 week ago

Question

Discuss the various types of policies ?

Answered: 1 week ago

Question

Briefly explain the various types of leadership ?

Answered: 1 week ago