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Hello, I need help with the following question for Managerial Accounting: Managing a Constrained Resource Nutty Co. Gourmet Snacks makes three different kinds of snack
Hello, I need help with the following question for Managerial Accounting:
Managing a Constrained Resource Nutty Co. Gourmet Snacks makes three different kinds of snack mixes. Following is informtion about the production and costs: Mix 1 Mix 2 Mix 3 100 $ 55 $ Selling price per unit Variable cost per unit Processing time to make one unit Pounds of peanuts per one unit 150 $ 225 75 135 minutes 2.5 3.5 5.5 pounds Complete the following: 1. Each snack mix is processed on the same machine. Which snack mix would be the most profitable use of this constraint? Which would be the least profitable use of this constraint? 2. A severe shortage of peanuts has required the company to cut back its production so much that processing is no longer the constraint. Instead, production is constrained by is the total available pounds of peanuts. Which snack mix would be the most profitable use of this constraint? 3. Which snack mix has the largest contribution margin per unit? Is this the same as either part 1. or 2. ExplainStep by Step Solution
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