Hey I need answers to the following question

QUESTION 2 (40 MARKS) Karabo Blanket was formally trained as a pastry chef and became addicted to chocolate (which forms a major part in the presentation of pastries and canape's). While working at the Mount Nelson Hotel she met a rich guest who hails from St Petersburg, Russia (a city known for its chocolate making) who introduced her to a very specific and heavenly tasting chocolate, unknown in South Africa. She immediately realized the potential of producing and selling this chocolate and its resultant products in South Africa and with the help and financial backing of the Russian they established a chocolate manufacturing company called \"From Russia With Love (Pty) Ltd" (FRWL (Pty) Ltd). FRWL (Pty) Ltd will manufacture and sell three products namely Cocoa Powder (CP), Dark chocolate (DC) and Milk chocolate (MC). All these products will be manufactured in bulk units (1 kg blocks) and sold to hotels and catering companies for use in their pastries. During research and investigation Karabo realized why this chocolate until now has not been manufactured in South Africa. - Only a very specific cocoa bean, which is cultivated on a small estate in Kenya, may be used. - Highly trained labourers and technicians that are needed for each manufacturing process involved are currently unavailable in South Africa. The following processes were identified (one specialized labourer per process is necessary there are no other labourers involved in the manufacturing process). 0 Roasting: After being cleaned the cocoa beans are roasted for a long time at low heat, which allows the more delicate flavours to come through. 0 Winnowing: After roasting, the beans are put through a winnowing machine which removes the outer husks, leaving behind the roasted beans, now called nibs. o Milling: The nibs are then ground into thick liquid called chocolate liquor. o Pressing: The chocolate liquor is pressed to extract cocoa butter. 0 Mixing and pulverising: To make dark chocolate (DC), sugar and vanilla are mixed together and blended with the cocoa butter. For milk chocolate (MC), mild and sugar are mixed and blended with butter. For cocoa powder (CP) the butter is pulverized instead of being blended and mixed as with the other two products. 0 Refining: The different mixtures travel through a series of heavy rollers which refine the mixture to a dry flake. o Conching: Further develops flavour by putting chocolate through a kneading process. 0 Tempering: The mixture is then tempered, or passed through a heating, cooling and reheating process. 0 Moulding and grating. The mixture is then poured into moulds and cooled in a cooling chamber. Some chocolate moulds are then grated to make the final cocoa powder (CP). 9 Packaging: The chocolate are demolded and the three different products are packed in exclusive designer wrapping and tins. It is important to note that all 3 products need to go through the same machine in each and every process. After a fact finding visit to the estate in Kenya, Karabo could only secure 45 000kg of cocoa beans. The reason being that the rest of their crop is sold on fixed contract to St Petersburg. The Russian partner can recruit the necessary skilled labour in Russia and send them to South Africa. Based on a 10 hour working day the labourers can only be productive for 250 days a year. The rest of the time they will spend with their families in Russia. Production costs per unit (1 kg blocks) are predicted as follows: E E M_C B B 3 Cocoa beans 10 (2kg) 20 (4kg) 15 (3kg) Labour 20 18 30 Variable overheads _5 Q E Q 55 Variable overhead rate per average machine hour = R250 The fixed manufacturing cost will amount to R360 000 per annum and are allocated to the finished products @ R300 per machine hour, based on average available machine hours throughout the process. Because of the processes involved work studies concluded that the average total time that all labourers involved will spend on the completion (from beginning to end) often 1kg blocks of nished product will be as follows: CP: 1 hour DC: 0.75 hour MC: 1.5 hours Market research indicated the following: Expected sales per annum: CP DC MC Units Probability Units Probability Units Probability 1k blocks 1k blocks 8 000 50% 4 000 40% 5 000 30% 12 000 30% 5 000 50% 7 000 40% 15 000 20% 7 000 10% 8 000 30% To penetrate the market the following sales prices per unit (1 kg block) were established: CP: R8000 DC: R100.00 MC: R120.00 The Russian partner also indicated that he will be able to import the finished products from Russia at the following prices per 1kg block. CP: 224 Roubles DC: 320 Roubles MC: 360 Roubles The current spotrate: R1 = 4 Roubles REQUIRED: a) Calculate all possible constraints. (7) b) Calculate the relevant contributions and prioritize. (6) 0) Consider the following alternatives and assess what will be the best product m_ix and strategy: 1. 2. 3. 4. Manufacture all three chocolate products inhouse and sell these products locally. (5) Import all three chocolate products from Russia and sell these products locally. (3) Manufacture all three chocolate products inhouse, and import any shortage thereof. Sell products locally. (3) Determine the optimal combination of manufacturing and importing these three products. (6) d) Decide on the best strategy. Discuss non-quantitative facts and risks involved that Karabo should keep in mind pertaining each alternative