Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I have answered question #1. I need help with the other questions as soon as possible! Please show all the steps. Thanks! The Scenario The

I have answered question #1. I need help with the other questions as soon as possible! Please show all the steps. Thanks!

image text in transcribedimage text in transcribed

The Scenario The company is considering three nut mixes for inclusion in the new product line: Regular Mix, Deluxe Mix, and Holiday Mix, Each mix is made from 5 nuts in different combinations: The Regular Mix consists of 15% almonds, 25% Brazil nuts, 25% filberts, 10% pecans, and 25% walnuts The Deluxe Mix consists of 20% of each type of nut The Holiday Mix consists of 25% almonds, 15% Brazil nuts, 15% filberts, 25% pecans, and 20% walnuts An accountant at Brown & Haley completed a cost analysis and determined that the profit contribution per pound is $1.65 for the Regular Mix, $1.90 for the Deluxe Mix, and $2.35 for the Holiday Mix Different nuts come from different suppliers. They are shipped in bulk containers and ordering a partial container is not possible. The currently available container sizes and costs are as follows: Type of Nut Almond Brazil Filbert Pecan Walnut Container Size (pounds) 6000 7500 7500 6000 7500 Cost per Container $7800 $7350 $7150 $7200 $7450 One container of each of the types of nuts has been ordered and is on the way The sales and marketing teams have projected that initial demand for the different types of mixes will be as follows Type of Mix Regular Deluxe Holida Orders (pounds) 10,000 5,000 3,000 The president of Brown & Haley wants to commit to producing enough of the various mixes to meet the projected initial demand, even if not immediately profitable, in order to introduce these new mixes to the market 1. Based on current cost information, what is the cost per pound of the nuts included in the Regular, Deluxe, and Holiday mixes? Cost Per Pounds of Nuts: Almonds: $7800/6000 $1.30 Brazil: $7350/7500 $0.98 Filbert: $7150/7500 $0.95 Pecan: $7200/6000 $1.20 Walnut: $7450/7500= $0.99 Cost of Nuts in three Mixes Regular Mix: 0.15($1.30)0.25($0.98) 0.25($0.95) 0.10($1.20) 0.25($0.99) 1.045 $1.04 Deluxe Mix 0.20($1.30)0.20 ($0.98) 0.20($0.95)0.20($1.20) 0.20(S0.99) -1.084 $1.08 Holiday Mix: 0.25($1.30) + 0.15($0.98) + 0.15($0.95) + 0.25($1.20) + 0.20($0.99) = 1.1125 = $1.11 2. How much of each type of mix should be made using only the nuts already ordered and keeping in mind the President's requirement to meet the initial demand for each type of mix? What is the resulting optimized profit? 3. Sometimes small amounts of certain types of nuts become available in secondary markets. Which types of nuts should be pursued in order to increase profit? A supplier has offered us 1000 pounds of almonds for $1000. Should these almonds be purchased? If yes, how much would profits increase? 4. A supplier has offered us 1200 pounds of filberts for $950. Should these filberts be purchased? If yes, how much would profits increase? The marketing department is proposing an upgrade to the packaging of the Holiday Mix that would decrease the profit contribution from $2.35 to $2.29 per pound. Would the number of pounds of each type of mix be changed in the optimal solution? (Note that the President would be impressed if you did not need to rerurn Solver to answer this question) If the President's requirement to meet the initial demand for each type of mix were eliminated would profitability be impacted? If so, by how much? 5. 6. 7. If you use Solver to answer a question, be sure to reference the specific Solver output that supports your answer. The Scenario The company is considering three nut mixes for inclusion in the new product line: Regular Mix, Deluxe Mix, and Holiday Mix, Each mix is made from 5 nuts in different combinations: The Regular Mix consists of 15% almonds, 25% Brazil nuts, 25% filberts, 10% pecans, and 25% walnuts The Deluxe Mix consists of 20% of each type of nut The Holiday Mix consists of 25% almonds, 15% Brazil nuts, 15% filberts, 25% pecans, and 20% walnuts An accountant at Brown & Haley completed a cost analysis and determined that the profit contribution per pound is $1.65 for the Regular Mix, $1.90 for the Deluxe Mix, and $2.35 for the Holiday Mix Different nuts come from different suppliers. They are shipped in bulk containers and ordering a partial container is not possible. The currently available container sizes and costs are as follows: Type of Nut Almond Brazil Filbert Pecan Walnut Container Size (pounds) 6000 7500 7500 6000 7500 Cost per Container $7800 $7350 $7150 $7200 $7450 One container of each of the types of nuts has been ordered and is on the way The sales and marketing teams have projected that initial demand for the different types of mixes will be as follows Type of Mix Regular Deluxe Holida Orders (pounds) 10,000 5,000 3,000 The president of Brown & Haley wants to commit to producing enough of the various mixes to meet the projected initial demand, even if not immediately profitable, in order to introduce these new mixes to the market 1. Based on current cost information, what is the cost per pound of the nuts included in the Regular, Deluxe, and Holiday mixes? Cost Per Pounds of Nuts: Almonds: $7800/6000 $1.30 Brazil: $7350/7500 $0.98 Filbert: $7150/7500 $0.95 Pecan: $7200/6000 $1.20 Walnut: $7450/7500= $0.99 Cost of Nuts in three Mixes Regular Mix: 0.15($1.30)0.25($0.98) 0.25($0.95) 0.10($1.20) 0.25($0.99) 1.045 $1.04 Deluxe Mix 0.20($1.30)0.20 ($0.98) 0.20($0.95)0.20($1.20) 0.20(S0.99) -1.084 $1.08 Holiday Mix: 0.25($1.30) + 0.15($0.98) + 0.15($0.95) + 0.25($1.20) + 0.20($0.99) = 1.1125 = $1.11 2. How much of each type of mix should be made using only the nuts already ordered and keeping in mind the President's requirement to meet the initial demand for each type of mix? What is the resulting optimized profit? 3. Sometimes small amounts of certain types of nuts become available in secondary markets. Which types of nuts should be pursued in order to increase profit? A supplier has offered us 1000 pounds of almonds for $1000. Should these almonds be purchased? If yes, how much would profits increase? 4. A supplier has offered us 1200 pounds of filberts for $950. Should these filberts be purchased? If yes, how much would profits increase? The marketing department is proposing an upgrade to the packaging of the Holiday Mix that would decrease the profit contribution from $2.35 to $2.29 per pound. Would the number of pounds of each type of mix be changed in the optimal solution? (Note that the President would be impressed if you did not need to rerurn Solver to answer this question) If the President's requirement to meet the initial demand for each type of mix were eliminated would profitability be impacted? If so, by how much? 5. 6. 7. If you use Solver to answer a question, be sure to reference the specific Solver output that supports your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing Cash Flow An Operational Focus

Authors: Rob Reider, Peter B. Heyler

1st Edition

0471228095, 9780471228097

More Books

Students also viewed these Finance questions