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i Data Table $ 15 5 Milk (10 litres x $1.50 per litre) Variable direct manufacturing labour Variable manufacturing overhead Fixed manufacturing cost allocated 5

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i Data Table $ 15 5 Milk (10 litres x $1.50 per litre) Variable direct manufacturing labour Variable manufacturing overhead Fixed manufacturing cost allocated 5 6 $ 31 Total manufacturing cost i Required 1. Suppose Manitoba Dairy can acquire all the Holstein milk that it needs. What is the minimum price per kilogram it should charge for the hard cheese? 2. Now suppose that the Holstein milk is in short supply. Every kilogram of hard cheese produced by Manitoba Dairy will reduce the quantity of soft cheese that it can make and sell. What is the minimum price per kilogram it should charge to produce the hard cheese? Manitoba Dairy, maker of specialty cheeses, produces a soft cheese from the milk of Holstein cow cheese, which has a contribution margin of $8, requires 4 litres of milk. A well-known gourmet resta of a hard cheese from the same milk of Holstein cows. Knowing that the dairy has sufficient unuse calculates the costs of making 1 kilogram of the desired hard cheese: Requirement 1. Suppose Manitoba Dairy can acquire all the Holstein milk that it needs. What is the minimum price per kilogram it shoul cheese? If Manitoba Dairy can get all the Holstein milk it needs and has sufficient production capacity, then the minimum price per kilogram it shou cheese is $ per kilo. Requirement 2. Now suppose that the Holstein milk is in short supply. Every kilogram of hard cheese produce soft cheese that it can make and sell. What is the minimum price per kilogram it should charge to produce the With the Holstein milk in short supply, determine the minimum price per kilogram it should charge to produce formula, and then calculate the minimum price. (Round your answers to one decimal place as needed.) formula, and then calculate the minimum price. (Round your answers to one decimal place as needed.) Hard cheese Soft cheese Soft cheese Minimum price

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