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Provide the optimal production schedule for the candy division. Exhibit 4 Resource Allocation Happiland is dealing with some capacity challenges in their candy division. They
Provide the optimal production schedule for the candy division.
Exhibit 4 Resource Allocation Happiland is dealing with some capacity challenges in their candy division. They currently produce three types of sour candies, Sugarbombs, Cherrysqueezes, and Sourblasters. They all use the same type of sour flavouring, "Xsour", and there have been challenges getting that flavouring. The company is unsure of which to produce! and so have been basing their production on demand numbers (ie Sugarbombs first then the other two). Data is as follows: Sugarbombs Cherrysqueezes Sourblasters Selling price per bag $5.50 $4.50 5100 Demand (in bags) 2000 1000 1000 Variable costsfbag 4.00 3.50 4.50 Fixed costsfbag .25 .50 .65 KG of Xsour per bag 0.05 0.25 0.10 Minimum bags produced 100 100 100 The Xsour costs $5 per K6 and Happiland can only procure 245 KG of Ksour. They must produce a minimum of 100 bags of each type of candy. They are unsure how to proceed to determine the optimal production structure subject to these constraintsStep by Step Solution
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