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Problem (5): @ Kenzy Co. has three stations for sorting and re-packing the red and yellow apples it imports every month. Each station works
Problem (5): @ "Kenzy Co." has three stations for sorting and re-packing the red and yellow apples it imports every month. Each station works 25 days on the average every month, and two work-shifts of 8 hours each shift, are normally completed every working day in each station. Each sort of apple is offered for sale in special boxes where each box contains only one ton of either the red or the yellow apple. budget for each quarter of the year and the following estimates are presented for the coming The monthly committed fixed costs of the company are LE 100,000. The company prepares a quarter which will start January 1, 2021: March Yellow January February Maximum demand (boxes) Red Yellow Red Yellow Red Selling price per box (LE 1000) 55 100 50 100 50 100 Variable cost per box (LE 1000) 16 10 16 10 16 10 Processing time required per box (hours) Required: 12 5 12 5 12 5 4 10 8 10 10 10 Use appropriate traditional managerial accounting marginal analysis techniques to determine the optimal mix of imports in each month, then prepare the expected detailed income statement for each month and for the whole of the first quarter of 2021.
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