Question
Please help if you are able. Thank you! In 2014 Janice Martin fulfilled a life-long dream and moved her home-based cottage baking business to a
Please help if you are able. Thank you!
In 2014 Janice Martin fulfilled a life-long dream and moved her home-based cottage baking business to a retail storefront with a commercial kitchen. Since then, she has continued to develop here product lines and now specializes in three products featuring high quality cocoa: muffins, tortes, and cookies.
Janice uses a special cocoa in all her products, giving them a distinctly deep chocolate flavor. Her supplier has just informed her that unusual weather has affected the cocoa bean harvest. As a result, she will be able to purchase only 180,000 ounces of cocoa this year. Muffins require 1 ounce of cocoa per box, tortes require 2 ounces of cocoa per torte, and cookies require 0.5 ounce of cocoa per box.
Janice's accountant, Denis Mangic, provided her with the following unit information for each of the three products.
Muffins | Tortes | Cookies | |
Demand | 100,000 boxes | 60,000 tortes | 40,000 boxes |
Sales price | $30.00 | $40.00 | $12.00 |
Variable cost | 16.00 | 24.00 | 6.00 |
Contribution margin | $14.00 | $16.00 | $ 6.00 |
Using the demand projections provided by Denis, calculate how much cocoa Janice will need to purchase to meet the year's production needs. ROUND YOUR ANSWER TO WHOLE OUNCES.
ounces?
Given the limit on cocoa purchases, determine how Janice should prioritize production of muffins, tortes, and cookies. Indicate your by entering 1, 2, or 3 for each product.
Muffins: Tortes: Cookies:
Calculate how many ounces of cocoa Janice should allocate to each product and how many units of each product will be produced.
Ounces of Cocoa | Units Produced | |
Muffins | ounces | boxes |
Tortes | ounces | tortes |
Cookies | ounces | boxes |
Calculate the total contribution margin Janice will earn given the limited cocoa availability. ROUND YOUR ANSWER TO WHOLE DOLLARS. DO NOT INCLUDE A $ IN YOUR ANSWER.
$
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