Let me know if there is anything else i need to provide.

On Monday, Sepcontroller, the salate rations um-sized private ther, and Blue Bell Canners Case On Monday, September 13, 2018. Mr. Mitchell Gordon, Vice-President of Operations, asked the controller the sales manager and the production manager to meet with him to discuss the amount of tomato products to pack that season. The tomato crop, which had been purchased at planting was beginning to arrive at the cannery, and packing operations would have to be started by the following Monday. Blue Bell Canners was a medium-sized company which canned and distributed a variety of fruit and vegetable products under private brands in the western states Mr. William Cooper, the controller, and Mr. Charles Myers, the sales manager, were the first to arrive in Mr. Gordon's office. Dan Tucker, the production manager, came in a few minutes later and said that he had picked up Produce Inspections's latest estimate of the quality of the incoming tomatoes. According to their report, about 20% of the crop was Grade "A" quality and the remaining portion of the 3,000,000-pound crop was Grade "B." Gordon asked Myers about the demand for tomato products for the coming year. Myers replied that they could sell all of the whole canned tomatoes they could produce: The expected demand for tomato juice and tomato paste, on the other hand, was limited. The sales manager then passed around the latest demand forecast, which is shown in Table 1. He reminded the group that the selling prices had been set in light of the long-term marketing strategy of the company, and potential sales had been forecasted at these prices. Bill Cooper, after looking at Myer's estimates of demand, said that it looked like the company, "should do quite well (on the tomato crop) this year." With the new accounting system that had been set up, he had been able to compute the contribution for each product, and according to his analysis the incremental profit on the whole tomatoes was greater than for any other tomato product. In May, after Blue Bell had signed contracts agreeing to purchase the grower's production at an average delivered price of 6 cents per pound, Cooper had computed the tomato products' contributions (see Table 2). Dan Tucker brought to Cooper's attention that, although there was ample production capacity, it was impossible to produce all whole-tomatoes as too small a portion of the tomato crop was "A" quality. Blue Bell used a numerical scale to record the quality of both raw produce and prepared products. This scale ran from zero to ten, the higher number representing better quality. Rating tomatoes according to this scale, "A" tomatoes averaged nine points per pound and "B" tomatoes averaged five points per pound. Tucker noted that the minimum average input quality for canned whole tomatoes was eight and for juice it was six points per pound. Paste could be made entirely from "Bgrade tomatoes. This meant that whole tomato production was limited to 800,000 pounds. Gordon stated that this was not a real limitation: He had been recently solicited to purchase 80,000 pounds of Grade "A" tomatoes at 8.5 cents per pound and at that time had turned down the offer. He felt, however, that the tomatoes were still available. Myers, who had been doing some calculations, said that although he agreed that the company "should do quite well this year," it would not be by canning whole tomatoes. It seemed to him that the tomato cost should be allocated on the basis of quality and quantity rather than by quantity only as Cooper had done. Therefore, he had recomputed the marginal profit on the basis (see Table 3), and from his results, Blue Bell should use 2,000,000 pounds of the "B" tomatoes and all of the "A" tomatoes for juice. If the demand expectations were realized, a contribution of $48,000 would be made on this year's tomato crop. TABLE 1 Demand Forecasts Selling Price per Care Demand Forecast Casa 800.000 Produer 24 ans of 2% whole tomatoes 24 cans of size 2% chose pench halves 24 cans of sine 2% pachetar 24 cans of sine 2% tomato juice 24 cans of size cooking applies 24 cams of tomato paste $4.00 5.40 5.000 50.000 4.90 3.80 15.000 80,000 TABLE 2 Product Item Profitability 24-28 whole Tomatoes 24-24 Choice Peach 24-28 Peach Neste 24.2 Tomato Juice 2425 Cooking Apple 242% Tomato Paste Product $4.00 $5.40 $4.60 $4.50 $4.90 $3,80 1.18 0.70 0.54 0.26 Setting price Variable costs: Direct labor Variable overhead Variable selling Packaging material Fruire Total variable costs Contribution Less allocated overhead Net profit 0.24 0.40 0.70 1.40 0.32 0.30 0.56 077 LOS 180 4.38 1.27 0.23 0.40 0.60 1.70 4.20 0.40 0.52 (0.12) 1.32 0.36 0.85 0.65 1.20 4.38 0.12 0.21 (0.09) 3.60 0.40 0.28 0.12 0.70 0.90 2.80 1.10 0.75 0.35 1.02 0.70 0.32 1.50 3.45 0.35 0.23 0.12 Product usage is as given below: Product Pounda per Case Whole tomatoes Peach halves Peach nectar Tomato juice Cooking apples Tomato paste TABLE 3 Marginal Analysis of Tomato Products 2 - cost per pound of A tomatoes in cents. Y cost per pound of B tomatoes in cents. 1. 600,000 lb X Z)+(2,400,000 lb X Y)-(3,000,000 lb X 6). Z = 9.32 per pound. Y = 5.18 per pound. Tomato Canned Whole Tomatoes Tomato Juice Product $4.00 $4.50 $3.80 Selling price Variable cost (excluding tomato costs) 2.52 $1.48 1.49 (30.01) 3.18 $1.32 1.24 1.95 $1.85 1.30 $0.55 Tomato cost Marginal profit $0.08 Case Questions Before any systematic analysis can be performed on the Blue Bell Cannery problem, the issue of relevant data must be resolved. With which cost-and-profit data do you agree, Table 2 or Table 3? Does the fact that Blue Bell has already purchased the 3-million- pound crop at planting affect your answer? 2. Do you think that the allocated overhead should be subtracted from the profit contribution per case as shown in Table 2? 3. Formulate an LP model and solve with Excel Solver to determine the optimal solution to the Blue Bell Canners problem. 4. Should the company purchase the additional 80,000 pounds of grade-A tomatoes? If so, what is the new product mix? 5. The marketing Department feels that it can increase demand for tomato juice by 25,000 cases. How much should the company spend on such a campaign? 6. If the selling price of tomato juice is increased by $.30 per case, how will the optimum product mix and profit change if the demand remains fixed? On Monday, Sepcontroller, the salate rations um-sized private ther, and Blue Bell Canners Case On Monday, September 13, 2018. Mr. Mitchell Gordon, Vice-President of Operations, asked the controller the sales manager and the production manager to meet with him to discuss the amount of tomato products to pack that season. The tomato crop, which had been purchased at planting was beginning to arrive at the cannery, and packing operations would have to be started by the following Monday. Blue Bell Canners was a medium-sized company which canned and distributed a variety of fruit and vegetable products under private brands in the western states Mr. William Cooper, the controller, and Mr. Charles Myers, the sales manager, were the first to arrive in Mr. Gordon's office. Dan Tucker, the production manager, came in a few minutes later and said that he had picked up Produce Inspections's latest estimate of the quality of the incoming tomatoes. According to their report, about 20% of the crop was Grade "A" quality and the remaining portion of the 3,000,000-pound crop was Grade "B." Gordon asked Myers about the demand for tomato products for the coming year. Myers replied that they could sell all of the whole canned tomatoes they could produce: The expected demand for tomato juice and tomato paste, on the other hand, was limited. The sales manager then passed around the latest demand forecast, which is shown in Table 1. He reminded the group that the selling prices had been set in light of the long-term marketing strategy of the company, and potential sales had been forecasted at these prices. Bill Cooper, after looking at Myer's estimates of demand, said that it looked like the company, "should do quite well (on the tomato crop) this year." With the new accounting system that had been set up, he had been able to compute the contribution for each product, and according to his analysis the incremental profit on the whole tomatoes was greater than for any other tomato product. In May, after Blue Bell had signed contracts agreeing to purchase the grower's production at an average delivered price of 6 cents per pound, Cooper had computed the tomato products' contributions (see Table 2). Dan Tucker brought to Cooper's attention that, although there was ample production capacity, it was impossible to produce all whole-tomatoes as too small a portion of the tomato crop was "A" quality. Blue Bell used a numerical scale to record the quality of both raw produce and prepared products. This scale ran from zero to ten, the higher number representing better quality. Rating tomatoes according to this scale, "A" tomatoes averaged nine points per pound and "B" tomatoes averaged five points per pound. Tucker noted that the minimum average input quality for canned whole tomatoes was eight and for juice it was six points per pound. Paste could be made entirely from "Bgrade tomatoes. This meant that whole tomato production was limited to 800,000 pounds. Gordon stated that this was not a real limitation: He had been recently solicited to purchase 80,000 pounds of Grade "A" tomatoes at 8.5 cents per pound and at that time had turned down the offer. He felt, however, that the tomatoes were still available. Myers, who had been doing some calculations, said that although he agreed that the company "should do quite well this year," it would not be by canning whole tomatoes. It seemed to him that the tomato cost should be allocated on the basis of quality and quantity rather than by quantity only as Cooper had done. Therefore, he had recomputed the marginal profit on the basis (see Table 3), and from his results, Blue Bell should use 2,000,000 pounds of the "B" tomatoes and all of the "A" tomatoes for juice. If the demand expectations were realized, a contribution of $48,000 would be made on this year's tomato crop. TABLE 1 Demand Forecasts Selling Price per Care Demand Forecast Casa 800.000 Produer 24 ans of 2% whole tomatoes 24 cans of size 2% chose pench halves 24 cans of sine 2% pachetar 24 cans of sine 2% tomato juice 24 cans of size cooking applies 24 cams of tomato paste $4.00 5.40 5.000 50.000 4.90 3.80 15.000 80,000 TABLE 2 Product Item Profitability 24-28 whole Tomatoes 24-24 Choice Peach 24-28 Peach Neste 24.2 Tomato Juice 2425 Cooking Apple 242% Tomato Paste Product $4.00 $5.40 $4.60 $4.50 $4.90 $3,80 1.18 0.70 0.54 0.26 Setting price Variable costs: Direct labor Variable overhead Variable selling Packaging material Fruire Total variable costs Contribution Less allocated overhead Net profit 0.24 0.40 0.70 1.40 0.32 0.30 0.56 077 LOS 180 4.38 1.27 0.23 0.40 0.60 1.70 4.20 0.40 0.52 (0.12) 1.32 0.36 0.85 0.65 1.20 4.38 0.12 0.21 (0.09) 3.60 0.40 0.28 0.12 0.70 0.90 2.80 1.10 0.75 0.35 1.02 0.70 0.32 1.50 3.45 0.35 0.23 0.12 Product usage is as given below: Product Pounda per Case Whole tomatoes Peach halves Peach nectar Tomato juice Cooking apples Tomato paste TABLE 3 Marginal Analysis of Tomato Products 2 - cost per pound of A tomatoes in cents. Y cost per pound of B tomatoes in cents. 1. 600,000 lb X Z)+(2,400,000 lb X Y)-(3,000,000 lb X 6). Z = 9.32 per pound. Y = 5.18 per pound. Tomato Canned Whole Tomatoes Tomato Juice Product $4.00 $4.50 $3.80 Selling price Variable cost (excluding tomato costs) 2.52 $1.48 1.49 (30.01) 3.18 $1.32 1.24 1.95 $1.85 1.30 $0.55 Tomato cost Marginal profit $0.08 Case Questions Before any systematic analysis can be performed on the Blue Bell Cannery problem, the issue of relevant data must be resolved. With which cost-and-profit data do you agree, Table 2 or Table 3? Does the fact that Blue Bell has already purchased the 3-million- pound crop at planting affect your answer? 2. Do you think that the allocated overhead should be subtracted from the profit contribution per case as shown in Table 2? 3. Formulate an LP model and solve with Excel Solver to determine the optimal solution to the Blue Bell Canners problem. 4. Should the company purchase the additional 80,000 pounds of grade-A tomatoes? If so, what is the new product mix? 5. The marketing Department feels that it can increase demand for tomato juice by 25,000 cases. How much should the company spend on such a campaign? 6. If the selling price of tomato juice is increased by $.30 per case, how will the optimum product mix and profit change if the demand remains fixed