Scenario: Hestia, Inc, makes 3 different-sized natural re-usable wooden straws. These straws are sold to restaurants and supermarkets and provided with take-out orders. The three sizes are Tea Straw, Soup Straw, and Tall Drink Straw. Straws are sold in packs. 100 straws to a pack. In FY 2020, Hestia Inc's 2nd year of operation, business continued to grow due to Covid-19 and the increased demand for take out orders.

In FY 2021, Hestia Inc has struggled to hire, train, and retain new workers, called manufacturing technicians, to keep production capacity at levels necessary to meet customer demand. Over the past 3 months, Hestia Inc has been short 4 manufacturing techs each week and as a result, weekly demand has not been met. Enrique DeVega, Hestia Inc's controller, has requested your assistance to determine how best to maximize weekly profits until these staffing deficiencies can be resolved. He has sent you the following financial and operational information (see Exhibit 1 below) about each straw type.

You have learned a manufacturing tech typically works 50 hours per week (no overtime) at a rate of $18 per hour. Over the last 3 months, Hestia Inc's production has required 37 techs to meet weekly demand. As previously stated, production staffing has run short each week by 4 manufacturing technicians. Your assignment is to determine how much of each straw type to manufacture given the staffing shortage, to maximize weekly profits.

Exhibit 1
FY 2021	Tea Straw	Soup Straw	Tall Drink Straw
Weekly Demand [in number of packs] (packs are made up of 100 spoons)	7,000	5,250	4,400
Per Pack
Sales Price / pack	$9.50	$20.00	$30.00
Variable Cost / pack	$2.50	$11.00	$17.00
Labor minutes to make 1 pack	5.0	6.0	10.0

Calculate the missing chart values for letters A, B, and C. Show your work/assumptions.

A) What is the Contribution Margin $ per pack for each straw type?

Straw Type	Tea Straw	Soup Straw	Tall Drink Straw
Contribution Margin $ per pack

B) What is the Contribution Margin $ per hour for each straw type?

Straw Type	Tea Straw	Soup Straw	Tall Drink Straw
Contribution Margin $ per pack

C) Q5: Based on the financial and operational information in Exhibit 1 above, what straw types should be manufactured first, second, and third?

Straw Type	Tea Straw	Soup Straw	Tall Drink Straw
Production Ranking

Calculate the values for letters D, E, and F. Show your work/assumptions.

D) On the basis of the manufacturing production order determined in questionletter C, how many packs of tea straws should be made each week until the staff shortage has been eliminated?

E) On the basis of the manufacturing production order determined in questionletter C, how many packs of soup straws should be made each week until the staff shortage has been eliminated?

F) On the basis of the manufacturing production order determined in questionletter C, how many packs of tall drink straws should be made each week until the staff shortage has been eliminated?