Question
The following information is the COMPLETE CASE STUDY. NO MISSING DATA. Devine Confections, a candy company, produces 4 nut products: Whole, Cluster, Crunch, Roasted. The
The following information is the COMPLETE CASE STUDY. NO MISSING DATA.
Devine Confections, a candy company, produces 4 nut products: Whole, Cluster, Crunch, Roasted. The capacity of the company fell behind the demand. Competition and increasing raw material prices have also placed pressure on the company's profit margins, so the company needs to operate as efficiently as possible. The company's C-Level Management started planning for the upcomming (current) fiscal year.
FIRST, please fullfill what are missing in each picture above.
The company controller wants to discontinue manufacturing and selling Cluster and Whole products. Develop an optimal production model for the company and analyize the controller's suggestion. SECOND, please answer the following questions:
Hours Available 3000.00 3000.00 1000.00 2700.00 Minutes required per pound Whole Cluster Crunch 1.00 1.50 0.70 1.60 Machine Use Hulling Roasting Coating Packaging 1.00 2.00 1.00 2.50 1.00 1.00 0.20 1.25 Roasted 1.00 1.75 0.00 0.70 Pounds Available See Procurment Dept Data See Procurment Dept Data Proportion of Materials Per Pound Direct Materials Crunch 0.20 0.80 Roasted 1.00 0.00 Whole Cluster Nuts Chocolate 0.60 0.40 0.40 0.60 Assume that the total fixed costs remain the same as the prior year. (Unaffected by inflation.) Assume that the total variable manufacturing overhead remains the same as the prior year. Hours Available 3000.00 3000.00 1000.00 2700.00 Minutes required per pound Whole Cluster Crunch 1.00 1.50 0.70 1.60 Machine Use Hulling Roasting Coating Packaging 1.00 2.00 1.00 2.50 1.00 1.00 0.20 1.25 Roasted 1.00 1.75 0.00 0.70 Pounds Available See Procurment Dept Data See Procurment Dept Data Proportion of Materials Per Pound Direct Materials Crunch 0.20 0.80 Roasted 1.00 0.00 Whole Cluster Nuts Chocolate 0.60 0.40 0.40 0.60 Assume that the total fixed costs remain the same as the prior year. (Unaffected by inflation.) Assume that the total variable manufacturing overhead remains the same as the prior yearStep by Step Solution
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