Percula Farms ralses marine fish for sale In the aquarlum trade. Each year, Percula obtains a batch of approximately one million eggs

from a local supplier. Percula's manager is trylng to decide whether to use the farm's facilitles to ralse Maroon Clownfish or Queen

Angelfish. Clownfish eggs cost $$5,500$ per batch, while angelfish eggs cost $$9,500$ per batch. Due to differences in needs, only one

specles may be ralsed at a time and only one batch of fish can be ralsed in any $52-$week perlod.

With current facilitles, approximately $10$ percent of clownfish eggs and $5$ percent of angelfish eggs can be successfully ralsed to

maturity. Clownfish take approximately $35$ weeks to grow to a salable size, while angelfish take $50$ weeks. Angelfish also requlre more

care than clownfish. Each week, angelfish need two complete water changes and $20$ feedings, while clownfish need only one water

change and $15$ feedings. Each feeding costs $$150$ and each water change costs $$1,000.$ Heatling and lighting costs equal $$400$ per

week of rearing, regardless of which type of fish is belng ralsed. Fixed overhead costs for the year amount to $$80,000.$ Percula can sell

clownfish for $$4$ each and angelfish for $$10$ each.

Required:

a$-1.$ Calculate the operating Income from ralsing clownfish and angelfish.

a$-2.$ Which specles should Percula ralse to earn the highest operating Income for the year?

c$.$ & d$.$ Percula's manager is considering the following Improvements, each of which will cost an additional $$8,000$ for the year. Due to

resource IImitations, only one can be implemented.

Purchasing a higher quality filter materlal that will significantly Improve water conditions in the rearing tanks. The higher water

quality will Increase the survival rates to $12$ percent for clownfish and $6$ percent for angelfish. The need for water changes will also

be reduced to one each week for angelfish. Due to the higher ylelds, feeding costs will Increase to $$160$ each.

Installing newer, more efficlent equipment that will reduce heating and lighting costs to $$300$ per week of rearlng. The new

equipment will promote more stable conditions, Increasing the survlval rates of clownfish to $10\mathrm{.}5$ percent and of angelfish to $5\mathrm{.}5$

percent. The silght change in survival rates is not expected to Increase feeding costs.

I. Calculate the operating Income from raising clownfish and angelfish with new filter materlal.

II$.$ Calculate the operating Income from raising clownfish and angelfish with new heating and IIghting.

III. Which option do you think will be more beneficlal and which fish species should be ralsed?

Complete this question by entering your answers in the tabs below.

Req A$\mathrm{.}1$

Req $C$ and D

Calculate the operating income from raising clownfish and angelfish.