Question
The company is engaged in the production of three types of yoghurts: A, B and C. There is a plan for the production of yoghurts
The company is engaged in the production of three types of yoghurts: A, B and C. There is a plan for the production of yoghurts for the next year.
Products
| Plan-order, pcs | Variable costs | Milk consumption, litre / pc | Manufacturing time, min. | Price, USD |
А | 45 000 | 150 | 2 | 170 | 145 |
В | 55 000 | 90 | 1,5 | 150 | 135 |
С | 65 000 | 80 | 1,7 | 140 | 125 |
For the production of yoghurts, the company uses natural milk purchased from farms. Price for 1 liter - 5 USD. The company employs 45 employees 8 hours a week. The company's warehouse has 25,000 units of products, the maximum hardening is 30,000 units, no more than 1 month. Fixed costs amount to USD 43.5 thousand per month.
1) Estimate fixed and variable costs for each type of product
2) Estimate the income and profit for each type of yogurt. What is the maximum possible profit for the company?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To estimate the fixed and variable costs for each type of product we can use the information given in the table Product A Variable cost per unit 150 M...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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