Variable Costs Resources AT11 ES36 Prices PSoC 1 $ 720.00 per unit Assembly hrs. 6 $ 20.00 per hour Programming hrs. 16 $ 20.00 per hour Variable cost $ 1,140.00 $ 1,160.00 per unit 12 Fixed Costs Total fixed costs $ 62,000.00 # of units produced 200 Fixed cost per unit $310.00 (Only 200 pieces of PSoC available now) Profitability Analysis AT11 ES36 Selling price $ 1,490.00 $ 1,460.00 Variable cost ($1,140.00) ($1,160.00) Contribution margin $350.00 $300.00 Fixed cost ($310.00) ($310.00) Profit per unit $40.00 ($10.00) AT11 ES36 Number to make Contribution margin Total Contribution Margin $ 350.00 $ 300.00 Used NOWU UI+W Resources Per-unit requirements PSoC Assembly Programming Available 200 units 1566 hours 2880 hours 12 0911-34 Optimal production mix. Della Simpson Inc. sells two popular brands of cookies, Della's Delight and Bonnie's Bourbon. Della's Delight goes through the Mixing and Baking Departments, and Bonnie's Bour- bon, a filled cookie, goes through the Mixing, Filling, and Baking departments. Michael Shirra, vice-president of sales, believes that at the current price, Della Simpson can sell all of its daily production of Della's Delight and Bonnie's Bourbon. Both cookies are made in batches of 3,000 cookies. The batch times (in minutes) for producing each type of cookie and the minutes available per day are as follows: Department Minutes Mixing Filling Baking 0 10 15 Della's Delight Bonnie's Bourbon Minutes available per day Revenue and cost data for each type of cookie are: 270 300 Revenue per batch Variable cost per batch Contribution margin per batch Monthly fixed costs (allocated to each product) Della's Delight $ 475 175 300 18,650 Bonnie's Bourbon $ 375 125 250 22,350 Required 1. Using to represent the batches of Dolla's Delight and B to represent the batches of Bonnie's Bourbon made and sold each day, formulato Shirra's decision as a linear programming model. 2. Compute the optimal number of batches of each type of cookie that Della Simpson Inc. should make and sell each day to maximize operating income. Variable Costs Resources AT11 ES36 Prices PSoC 1 $ 720.00 per unit Assembly hrs. 6 $ 20.00 per hour Programming hrs. 16 $ 20.00 per hour Variable cost $ 1,140.00 $ 1,160.00 per unit 12 Fixed Costs Total fixed costs $ 62,000.00 # of units produced 200 Fixed cost per unit $310.00 (Only 200 pieces of PSoC available now) Profitability Analysis AT11 ES36 Selling price $ 1,490.00 $ 1,460.00 Variable cost ($1,140.00) ($1,160.00) Contribution margin $350.00 $300.00 Fixed cost ($310.00) ($310.00) Profit per unit $40.00 ($10.00) AT11 ES36 Number to make Contribution margin Total Contribution Margin $ 350.00 $ 300.00 Used NOWU UI+W Resources Per-unit requirements PSoC Assembly Programming Available 200 units 1566 hours 2880 hours 12 0911-34 Optimal production mix. Della Simpson Inc. sells two popular brands of cookies, Della's Delight and Bonnie's Bourbon. Della's Delight goes through the Mixing and Baking Departments, and Bonnie's Bour- bon, a filled cookie, goes through the Mixing, Filling, and Baking departments. Michael Shirra, vice-president of sales, believes that at the current price, Della Simpson can sell all of its daily production of Della's Delight and Bonnie's Bourbon. Both cookies are made in batches of 3,000 cookies. The batch times (in minutes) for producing each type of cookie and the minutes available per day are as follows: Department Minutes Mixing Filling Baking 0 10 15 Della's Delight Bonnie's Bourbon Minutes available per day Revenue and cost data for each type of cookie are: 270 300 Revenue per batch Variable cost per batch Contribution margin per batch Monthly fixed costs (allocated to each product) Della's Delight $ 475 175 300 18,650 Bonnie's Bourbon $ 375 125 250 22,350 Required 1. Using to represent the batches of Dolla's Delight and B to represent the batches of Bonnie's Bourbon made and sold each day, formulato Shirra's decision as a linear programming model. 2. Compute the optimal number of batches of each type of cookie that Della Simpson Inc. should make and sell each day to maximize operating income
