What is the minimum cost blend of the three beans that will

Assignment Help Finance Basics
Reference no: EM13618247

Hilltop Coffee manufactures a coffee product by blending three types of coffee beans. The cost per pound and available pounds are as follows: Bean 1: .50/pound 500 lbs available Bean 2: .70/pound 600 available lbs. Bean 3: .45/pound and 400 pounds available. Consumer tests with with coffee products were used to provide quality ratings on a 0 to 100 scale, with higher ratings indicating higher quality. Product-quality standards for the blended coffee require a consumer rating for taste to be at least 75 and a consumer rating to be at least 80. The aroma and taste ratings for coffee made from 100% of each bean are given in the following:

Bean 1: Aroma rating: 75 Taste rating: 86

Bean 2: Aroma rating: 85 Taste rating: 88

Bean 3: Aroma rating 60 Taste rating: 75

It is assumed taht the aroma and taste attributes of the coffee blend will be a weighted average of the attributes of the beans used in the blend.

A. What is the minimum cost blend of the three beans that will meet the quality standards and provide 1000 pounds of the blended coffee product?

B. What is the bean per pound of the coffee blend?

c. determine the aroma and taste ratings for the coffee blend.

d. If additional coffee were to be produced, what would be the expected cost per pound

*can anyone solve the question d.? I have no idea what does it mean to produce additional coffee.

Reference no: EM13618247

Questions Cloud

You are considering replacing an existing computer system : you are considering replacing an existing computer system which was purchased 2 years ago at a cost of 325000. the
Buckeye transport is in a declining industry it expects to : buckeye transport is in a declining industry. it expects to pay a dividend of 1.85 at the end of the year. its earnings
Alpha industries had an asset turnover of 14 times per year : alpha industries had an asset turnover of 1.4 times per year. if the return on total assets investment was 8.4 percent
Explain why the return-on-assets ratio is so much more : all state trucking co. has the following ratios compared to it industry for
What is the minimum cost blend of the three beans that will : hilltop coffee manufactures a coffee product by blending three types of coffee beans. the cost per pound and available
A stock is expected to pay 125 per share every year : a stock is expected to pay 1.25 per share every year indefinitely and the equity cost of capital for the company is
You expect to deposit 55000 today and then in 2 years to : you expect to deposit 55000 today and then in 2 years to deposit an additional 24000 into a savings account. how much
In your opinion is the current monetary policy that the : in your opinion is the current monetary policy that the federal reserve system pursuing helping or hurting our economy?
If you take out an 8000 car loan that calls for 48 monthly : if you take out an 8000 car loan that calls for 48 monthly payments of 240 cash what is the apr on the loan? what is

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd