Problem 4. Deloras Dunnville Delights (DDD) is a pastry and candy firm. Three of its most popular items all contain a secret ingredient that makes those who consume them very happy with their purchase. Due to production issues of the supplier, it has become difficult to get the secret ingredient in the required quantities. The situation is expected to be resolved as of the first of January, but for the month of December only 200,000 teaspoons of the special ingredient will be available to the firm. Information for the three products follows: Blue Brownies Lavender Fudge Red Velvet Cupcakes Normal monthly capacity 23,000 32,000 45,000 Normal monthly demand 19,000 30,000 42,000 Selling price $4.75 $25.00 $15.00 DM S.40 $3.50 $1.20 DL 45 1.30 85 VOH .12 1.05 .36 FOH 1.48 12.95 4.44 Total Cost $2.45 $18.80 6.85 DLH 25 .95 35 MH 55 85 20 TSP of secret ingredient 1.45 5.45 2.60 1. In order to maximize net income for the month of December, how many units of each product should the firm produce?Problem 2. Naturally Pretty is a privatly owned nursery that operates in Sedona, Arizona. The firm has three product lines. Bushes is the most recent addition and has been underperforming expectations. Contribution format income statements for the products for the most recent month follow. Common costs of $50,000 which cannot be reasonably allocated to the products consist primarily of adminstrative costs. Grasses Cacti Bushes Sales 430,000 467,000 125,000 VC 210,000 280,200 55,000 CM 220,000 186,800 70,000 FC Salaries 75,000 47,000 25,000 Advertising 25,000 30,000 35,000 Fertilizer 8,000 2,000 14,000 Land 10,000 25,000 30,000 Total Fixed Costs 118,000 104,000 104,000 |Segment Margin 102,000 82,800 (34,000) Variable costs include the cost to acquire the seeds, as well as potting soil and pots to get the plants started in life. Salaries are for the gardeners who care for the grown plants, advertising is done for each product line in order to carefully target the appropriate market, fertilizer is to keep the plants healthy while they await adoption and land is an allocation of the lease payments on the area that the firm occupies. What would be the impact on net income of the firm as a whole if it decides to drop bushes as a product line