Question
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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