The monthly sales forecast of a snack food is 450,000 cartons with a selling price of P400/ctn. Each carton contains 50 pouches weighing 50 grams/pouch. The factory is working 24 hrs/day at 25 days/month. Given the following capacities of the required machines and the raw materials needed, how many of each machine and raw material would you recommend to purchase? How many factory workers are needed in a 3-shift operation? What is the breakeven volume in terms of cartons? (70 pts.)

MACHINE EFF. CAPACITY MANPOWER/SHIFT

Kneading 82% 600kg/hr 3

Cutting 95% 75kg/hr 2

Packaging 97% 130pch/min 3

Drying 100% 1 ton/hr 2

Seasoning 100% 30kg/15min 1

Cartoning 100% 350ctns/hr 2

RAW MATERIAL COMPOSITION PACKAGING

Flour 43% 50kg/bag

Starch 37% 25kg/bag

Sugar 12% 50kg/bag

Seasoning 8% 30kg/bag

Wrapper 120pch/kg

Carton 25ctns/bdl

ADDITIONAL FACTS OF THE CASE:

Factory rental/month P300,000

Direct materials P70/kg

Direct labor P6/kg

Salaries/wages per month P250,000

Misc. expenses/month P600,000

Mach/equipt (life of 10 years) P16,000,000