Manitoba Dairy produces three products: BIZ, CAC and DEC. Unit data for the three products is as follows:

	BIZ	CAC	DEC
Selling price	$76	$90	$119
Direct materials (variable)	$20	$30	$35
Direct labour (variable)	$16	$24	$28
Fixed costs	$10	$10	$10
Profit	$30	$26	$46

All three products use the same direct material, Zovic, which costs $5 per kilogram (kg) and a maximum of 2,200 kilograms is available each month. The demand for all three products far exceeds the direct material available to produce them. Due to customer needs, a minimum of 100 units of each product must be produced each month. Fixed costs are capacity costs and cannot change in the short run. The $10 per unit fixed costs are calculated based on the minimum production of the three products together (this is, 100 units per product times 3 = 300 units). There is 450 units capacity each month.

Q1. Zovic per unit of BIZ is:

Question 1 options:

	7 kg
	8 kg
	4 kg
	6 kg
	5 kg

Q2. Contribution per unit of DEC is:

Question 2 options:

	$8
	$56
	$40
	$12
	$36

Q3. Contribution margin per kg of Zovic for CAC is:

Question 3 options:

	$8
	$12
	$10
	$5
	$6

Q4. Given the constraint represented by the input material Zovic, the ranking of the three products is in the following order:

Question 4 options:

	DEC, CAC, BIZ
	CAC, DEC, BIZ
	BIZ, DEC, CAC
	CAC, BIZ, DEC
	BIZ, CAC, DEC

Q5. Zovic needed to meet the minimum production requirements for the three products altogether is:

Question 5 options:

	500 kg
	2,200 kg
	1,700 kg
	1,900 kg
	700 kg

Q6. Total units of all three products to produce is:

Question 6 options:

	425
	371.4
	450
	300
	383.3

Q7. Assume that Manitoba Dairy cannot sell additional units of DEC and BIZ. What is the maximum amount that the company would be willing to pay per kg to acquire additional 150 kg of Zovic?

Question 7 options:

	$31
	$35
	$11
	$13
	$15

The company has sufficient unused capacity, but the type of milk used is of short supply. Hence, 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?

Question 8 options:

	$50
	$64
	$30
	$32
	$42