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Della Simpson, Inc., sells two popular brands of cookies: Della's Delight and Beth's Bourbon. Della's Delight goes through the Mixing and Baking departments, and Beth's
Della Simpson, Inc., sells two popular brands of cookies: Della's Delight and Beth's Bourbon. Della's Delight goes through the Mixing and Baking departments, and Beth'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, Della Simpson can sell all of its daily production of Della's Delight and Beth's Bourbon. Both cookies are made in batches of 3,000. (Click the loon 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 mmg DELITIET. Baking Department 11 D + 16 B 336 + 16 B 391 Requirement 2. Compute the optimal number of batches of each type of cookie that Della 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 50 balance, make sure to enter "o" in the appropriate field.) Total i Data Table Data Table Trial Comer (DB) Contribution Margin (0,0) 0 1 1 2 Revenue and cost data for each type of cookie are as follows: In each department, the time required per batch and the total time available each day are as follows: 3 (26.0) (21.10) (5,21) (0,21) 4 A B D 5 1 Department Minutes Mixing Filling Baking A B Della's Beth's Delight Bourbon 1 Revenue per batch S 475 $ 375) 2 Variable cost per batch 200 176 3 Contribution margin per batch S 275 $ $ 200 Monthly fixed costs (allocated to 4 each product) S S 18,600 $ 22.500 $ 2 3 Della's Delight 4 Beth's Bourbon 32 ol 11 16 16 16 832 5 Total available per day 336 Enter any number in the edit fields and then click Check Answer 391 ? 1 part remaini Finder Print swer Print Done Done
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