Question
Please read carefully. Paradise nursery Paradise nursery produces three different grades of mulch: Nuggets (N), Mini-Nuggets (M) and Chips (C). The Process requires pine bark,
Please read carefully.
Paradise nursery
Paradise nursery produces three different grades of mulch: Nuggets (N), Mini-Nuggets (M) and Chips (C). The Process requires pine bark, machine time labor time, and storage space. The resources are: 600 pounds of bark, 660 minutes of machine time, 480 hours of labor, and 480 bags for storage. One bag of Nuggets (N) requires 5 pounds of bark, 2 minutes of machine time, 2
hours of labor time. One bag of Mini-Nuggets (M) requires 6 pounds of bark, 4 minutes of machine time, 4 hours of labor time. One bag of Chips (C) requires 3 pounds of bark, 5 minutes of machine time, 3 hours of labor time. Each bag of Nuggets (N) contributes $9 to profits, each bag of Mini-Nuggets (M) contributes $9 to profits, and Each bag of Chips (C) contributes $6 to profits.
Managerial Report
Perform an analysis of the Paradise nursery product mix problem. Be sure to include information and analysis on the following:
1. Determine the optimal product mix and the total profit contribution.
2.Recommendations regarding how the total profit contribution can be increased if an additional 15 pounds of Burk is purchased.
- A recommendation as to whether Paradise, should increase 50 hours of labor for cost of $10 per hours.
- Recommendations on how profit contribution could be increased (if at all) if storage capacity is increased to 160
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