If the Presidents requirement to meet the initial demand for each type of mix were eliminated would profitability be impacted? If so, by how much?

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Current Issues One of the biggest issues facing this company is the rise in prices of raw materials, especially the iconic almond, which due to drought in California has seen a price rise in recent years. In order to diversify their product line, Brown & Haley has started to expand its repertoire to including other nuts, such as cashews and macadamia nuts. They also have a project underway to test a new product line of packaged mixed nuts. Note that this scenario is fictional and the details do not represent actual operations of Brown & Haley. 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 Holiday 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