RayRay, Inc., is a large food-processing company. It processes 153,000 pounds of peanuts in the peanuts department at a cost of $219,200 to yield 10,000 pounds of product A, 60,000 pounds of product B, and 16,000 pounds of product C. The company wants to make a gross margin of 10% of revenues on product C and needs to allow 20% of revenues for marketing costs on product C. An overview of operations follows

INFO: Product A is processed further in the salting department to yield 10,000 pounds of salted peanuts at a cost of $20,000 and sold for $12 per pound. times Product B (raw peanuts) is sold without further processing at $ 5 per pound. times Product C is considered a byproduct and is processed further in the paste department to yield 16,000 pounds of peanut butter at a cost of $11,200 and sold for $12 per pound.

$ 219 comma 200$219,200		10 comma 00010,000 pounds 16 comma 00016,000 pounds	$ 20 comma 000$20,000 Salting DepartmentProcessing		10 comma 00010,000 $ 12 divided by lb$12/lb Salted Peanutspounds
of 153 comma 000 lbof 153,000 lb ProcessingPeanuts Department					60 comma 00060,000 $ 5 divided by lb$5/lb Raw Peanutspounds
			$ 11 comma 200$11,200 ProcessingPaste Department		16 comma 00016,000 $ 12 divided by lb$12/lb Peanut Butterpounds
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