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Daisy Simpson, Inc., sells two popular brands of cookies: Daisy's Delight and Billie's Bourbon. Daisy's Delight goes through the Mixing and Baking departments, and Billie's
Daisy Simpson, Inc., sells two popular brands of cookies: Daisy's Delight and Billie's Bourbon. Daisy's Delight goes through the Mixing and Baking departments, and Billie'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 Billie's Bourbon. Both cookies are made in batches of 3.200. E: (Click the icon to view the time required per batch and the total time available.) E: (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 Billie'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 + S 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 (DB) Contribution Margin 1 2 3 (0,0) (27,0) (21,13) (7,20) (0,20) 4 5 Select the corner point that represents the optimal number of batches of each type of cookie, to maximize operating income. Corner (D,B) = - X Data table Data table In each department, the time required per batch and the total time available each day are as follows: Revenue and cost data for each type of cookie are as follows: A A 1 B D Department Minutes Mixing Filling Baking 26 0 6 B Daisy's Billie's Delight Bourbon $ 450 $ 350 125 75 2 1 Revenue per batch 2 Variable cost per batch 3 Contribution margin per batch Monthly fixed costs (allocated to 4 each product) $ 3 Daisy's Delight 4 Billie's Bourbon 5 Total available per day 275 325 S 12 121 7021 12 2401 2821 18,550 $ 22,200
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