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please help.... QUESTION 2 Superior Coffee manufactures three types of superior grade coffee packs, details of which are a follows: Product Royal Coleil sind sind
please help....
QUESTION 2 Superior Coffee manufactures three types of superior grade coffee packs, details of which are a follows: Product Royal Coleil sind sind Bied Selling price per unit ($) Variable cost per unit (5) Weekly demand (units) Machine hours per unit 400 500 3 4 Additional information Fixed costs are $12.500 per wock The company currently has 40 machines to manufacture the coffee packs, which is still insufficient capacity to satisfy demand Due to an increase in demand recently after successful marketing clients globally, the company is considering three separate proposals as below: To operate the machines at the present capacity of 227 lever stills per day for a five-day (h) To change to 3 x 7 hours shifts per day for a day week, where upon variable costs of each product would rise by 10% per unit and fixed costs would increase by 55,000 per week (I) To install 10 extra machines, and to operate on the normal 2x7 hour shifts per day for a 5- day week, where upon fixed costs would increase by 57.500 per wock Required: Calculate the shet fall in capacity for the period, bied operating the existing machines fx27 hour shifts per day fwa 5-day we 10 mars Determine the maximum weekly profit pemble from each papel 35 marks) c) State which alemative you would recommend to the CEO of Supernet Coffee and the remain why 15 marks) (Total Semarks) Step by Step Solution
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