How many bags of each type should be prepared

Assignment Help Operation Management

Reference no: EM132253254

A small candy shop is preparing for the holiday season. The owner must decide how many bags of deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix has .66 pound raisins and .34 pound peanuts, and the standard mix has .50 pound raisins and .50 pound peanuts per bag. The shop has 72 pounds of raisins and 59 pounds of peanuts to work with. Peanuts cost $.60 per pound and raisins cost $1.50 per pound. The deluxe mix will sell for $2.45 per pound, and the standard mix will sell for $2.22 per pound. The owner estimates that no more than 110 bags of one type can be sold.

a. If the goal is to maximize profits, how many bags of each type should be prepared? Use Excel Solver. (Round intermediate cost calculations to 2 decimal places and round your answers to the nearest whole number.)

Deluxe bags:

Standard bags:

b. What is the expected profit? Use Excel Solver. (Enter your answer based on the unrounded (not rounded) decision variable values from Part a. Round your answer to the nearest whole number. Omit the "$" sign in your response.)

Profit: $

Reference no: EM132253254

Questions Cloud

Describe the seven primary categories of access : Describe the seven primary categories of access controls system options managers may choose to implement.

What are the value of the bit pattern : What are the value of the bit pattern if they are treated as unsigned numbers.

Typical application structure in windows azure : What type of communication is used to exchange data between application components and why? (Cloud computing)

Explain overall national economic contribution : Explain Overall national economic contribution - direct and indirect of Steel, Aluminium and Automobiles ?

How many bags of each type should be prepared : If the goal is to maximize profits, how many bags of each type should be prepared?

Implications for interpersonal relationships in our society : What’s your perspective on this issue? Does increasing use of Internet have positive or negative implications for interpersonal relationships in our society?

Describe the technical or logical controls managers : Describe the technical or logical controls managers would implement to detect when suspicious activity occurs on a network and report this to administrators.

How the marketing practices for the industry have changed : Discuss how the marketing practices for this industry have changed over the past 20-30 years. Identify a particular company in this industry that you feel.

Discuss the types of classifications : Please discuss the types of classifications that we can use with our data analytics

User Account

All Pages