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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
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
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