Part One: The BC Company will produce $(3)$ products this week :

Products A$,$ B$,$ & C$.$ Management must decide how much of

each product to produce $($in tons$).$ Product A yields a

contribution margin of $$16$ per ton, Product B $$10$ per

ton, and Product C $$12$ per ton. All products produced will

be sold.

All Products are made by mixing materials from

inventory. For this week, there are $(4)$ materials available in

the following amounts: Mat$$l $1($M$1)$: $8,000$ tons, Mat$$l $2$

$($M$2)$: $6,500$ tons, Mat$$l $3($M$3)$: $4,800$ tons,

Mat$$l $4($M$4)$: $9,200$ tons.

Product A is made up of $50\%$ M$1+40\%$ M$2+10\%$ M$4$

Product B is made up of $40\%$ M$1+20\%$ M$2+20\%$ M$3$

$+20\%$ M$4$

Product C is made up of $20\%$ M$2+40\%$ M$3+40\%$ M$4$

Part $2$:

From the BC Company problem developed in Thur$$s

homework, create a revised analysis with the following

situation :

An additional $2,000$ tons each of Material $2$ & $3$ have

been located, and can be purchased at a premium.

Unfortunately, these prices can$$t be passed through to

customers, so the resulting impact is a decrease in the

contribution rate for the products with this Material.

Products A & B contribution would drop by $(-20\%),$ and C

would drop by $(-40\%)$ vs current contribution rates.

Should they make the purchase, based on the change in

Total Contribution $?$ And, why $?$

Show your Excel sheet with revised results and answer to

the questions.