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One case of Pale Ale per unit Selling price $25 current volume 26,000 cases (24 beers in a case) malts $2.60 hops $2.40 yeast $0.50

One case of Pale Ale
per unit
Selling price $25 current volume 26,000 cases (24 beers in a case)
malts $2.60
hops $2.40
yeast $0.50
packaging $5.00
*other production costs $4.50 *5 gallons of water for every gallon of beer, CO2, utilities, taxes
shipping $1.75
selling $1.25
total variable costs $18.00
total fixed up to 28,000 capacity
Salary brewer $1.15 $30,000.00
Salalry driver $0.77 $20,000.00
rent $1.92 $50,000.00
truck $0.92 $24,000.00
promotion exp $0.19 $5,000.00
total costs $22.96

#7 Due to the increase in Micro Breweries, the cascade hops that go into our Pale Ale and IPA are on back order. We currently have a back order for 70 cases of pale ale and 50 cases of IPA . The pale ale sells for $25 a case with variable costs of $18 per case and the IPA sells for $30 per case with variable costs of $20 per case. The Pale Ale requires 2 OZ of Cascade hops while the IPA requires 6 OZ of hopes. The brewery currently only has 350 ounces of cascade hops on hand. How many cases of each product should the brewery make? (CONSTRAINED RESOURCES)

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