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You have completed an analysis at Muesli AG to determine the most profitable use of their constrained resource, machine hours. Your analysis included granola bars,
You have completed an analysis at Muesli AG to determine the most profitable use of their constrained resource, machine hours. Your analysis included granola bars, mixed fruit muesli, and mixed fruit muesli. The results of the analysis indicate that the most profitable use of the machinery is to produce granola bars, followed by mixed muesli and muesli in that order. Before you recommend to the management that they should switch to making granola bars instead of mixed fruit muesli, because they are more profitable than the boxes of mixed fruit muesli what other considerations should you research and address?
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What is the market demand for each of the products?
Will customers change their buying habits if Muesli AG does not sell mixed fruit muesli?
How will the sales of other flavors of muesli be affected by the change in product mix?
What is the current price of nuts and fruits?
What are the expected terms of the new nationwide union bargaining agreement?
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