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the answers to the problem is provided please can you help me woth the working. 5. Davy Company sells three popular brands of cookies: Davy,
the answers to the problem is provided please can you help me woth the working.
5. Davy Company sells three popular brands of cookies: Davy, Cathy, Susan. Each brand of cookie goes through three processes (P1, P2, and P3). The company can sell all of its daily production of the cookies, Fractional batches are not allowed. The batch times for producing each brand of cookie, the minutes available per day, and operating income appear below. a. What is the optimal number of batches for the three cookies? 10 Davy, 10 Cathy, 0 Susan b. What is the maximum contribution margin? $9,250 Processing Time (minutes) Process Davy Cathy Susan Max Time P1 2 3 30 P2 2 2 4 50 P3 3 3 5 60 Operating Income per batch Davy Cathy Susan Total Revenue $900 $950 $1000 $2850 Variable cost 450 475 500 1425 Fixed cost 158 167 175 500 Operating Income $292 $308 $325 $925 Step by Step Solution
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