Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mighty Chocolate manufactures three chocolate bars, plain, almond and crispy. Because of their excellent quality. Mighty can sell all of the bars they produce. Select

image text in transcribed

Mighty Chocolate manufactures three chocolate bars, plain, almond and crispy. Because of their excellent quality. Mighty can sell all of the bars they produce. Select (per carton) data follows. 100 hours of machine time per week is available. Selling Price (per carton) Variable Cost Molding Time Required Crispy $60 $15 3 hours Almond $40 $20 2 hours Plain $20 $10 0.5 hours 1. What is the maximum monthly profit attainable? A) $1,000 B) $1,500 C) $3,600 D) $2,000 2. If the maximum sales of a product cannot exceed 100 cartons, what is the profit maximizing product mix? A) Produce 100 cartons of Plain Bars, and 100 cartons of Crispies B) Produce 100 cartons of Plain Bars, and 16.6 cartons of Crispies. C) Produce 100 cartons of Plain Bars, and 25 cartons of Almond. D) Produce 100 cartons of Plain Bars, and 100 cartons of Almond. 3. If the maximum sales of a product cannot exceed 100 cartons, how much would Mighty chocolates be willing to pay to hire one additional hour of machine time? A) $20 B) $15 C) $10 D $ 17.5

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

Step: 3

blur-text-image

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

Cost Accounting

Authors: M.E. Thukaram Rao

3rd Edition

8122433820, 978-8122433821

More Books

Students also viewed these Accounting questions

Question

What is the message frequency?

Answered: 1 week ago

Question

What is the schedule for this project?

Answered: 1 week ago

Question

Who is responsible for this project?

Answered: 1 week ago