Question

Fruit Ltd makes 3 types of products: Cherry, Blueberry and Strawberry. Extracts from the budget for the next year are as follows: Cherry Blueberry Strawberry Demand and production (units) 2,000 3,000 4,000 The following information is per unit of each product Per unit Cherry Blueberry Strawberry AED AED AED Selling price 174 340 308 Materials 30 80 60 Labour 40 100 80 Variable overhead 24 60 48 Each product uses a standard material component called a seed. Seeds are 10 AED per unit. The company expects the total fixed cost budget to be AED 120,000 Required: Part (a). It has now been realised that there will only be 35,000 seeds available next year. Calculate the production plan that will maximise profit for Fruit Ltd for the next year. State what that plan will be (All workings must be shown

131

likes
657 views

Answer to a math question Fruit Ltd makes 3 types of products: Cherry, Blueberry and Strawberry. Extracts from the budget for the next year are as follows: Cherry Blueberry Strawberry Demand and production (units) 2,000 3,000 4,000 The following information is per unit of each product Per unit Cherry Blueberry Strawberry AED AED AED Selling price 174 340 308 Materials 30 80 60 Labour 40 100 80 Variable overhead 24 60 48 Each product uses a standard material component called a seed. Seeds are 10 AED per unit. The company expects the total fixed cost budget to be AED 120,000 Required: Part (a). It has now been realised that there will only be 35,000 seeds available next year. Calculate the production plan that will maximise profit for Fruit Ltd for the next year. State what that plan will be (All workings must be shown

Expert avatar
Corbin
4.6
108 Answers
Given the constraints and information provided, we first need to calculate the contribution per unit for each product. The contribution per unit is calculated as follows:

Contribution per unit = Selling price per unit - (Materials per unit + Labour per unit + Variable overhead per unit + Seed cost per unit)

Let's calculate the contribution per unit for each product:

For Cherry:
\text{Contribution per unit} = 174 - (30 + 40 + 24 + 10) = 70 \text{ AED}

For Blueberry:
\text{Contribution per unit} = 340 - (80 + 100 + 60 + 10) = 90 \text{ AED}

For Strawberry:
\text{Contribution per unit} = 308 - (60 + 80 + 48 + 10) = 110 \text{ AED}

Next, we need to consider the seed limitation and the production plan that maximizes profit given the availability of seeds. The total number of seeds available is 35,000.

We will prioritize the production of each product based on their contribution per unit. The optimal production plan is as follows:

1. Produce 4,000 units of Strawberry, utilizing 4,000 seeds, with a total contribution of 4,000 \times 110 = 440,000 \text{ AED}.
2. Produce 3,000 units of Blueberry, utilizing the next 3,000 seeds, with a total contribution of 3,000 \times 90 = 270,000 \text{ AED}.
3. Produce 2,000 units of Cherry, using the remaining 2,000 seeds, with a total contribution of 2,000 \times 70 = 140,000 \text{ AED}.

Therefore, the production plan that will maximize profit for Fruit Ltd for the next year with 35,000 seeds available is as follows:

- Produce 4,000 units of Strawberry
- Produce 3,000 units of Blueberry
- Produce 2,000 units of Cherry

The total contribution from this production plan is 850,000 AED.

\boxed{\text{Answer: Total Contribution is 850,000 AED}}

Frequently asked questions (FAQs)
Math Question: What is the slope-intercept form of a linear equation passing through (3, 5) with a slope of 2/3?
+
What is the resultant displacement when a car travels 150 miles east and then turns around and travels 80 miles west?
+
What is the x-intercept of the logarithmic function f(x) = log₁₀(x) + 1?
+
New questions in Mathematics
1 + 1
-6n+5=-13
1/2x +3 <4x-7
A hotel in the Algarve had to offer 1 week of vacation to one of its employees as an Easter gift in a random choice. It is known that 80 people work in this hotel unit, 41 of whom are Portuguese and 39 are foreign nationals. There are 14 Portuguese men and 23 foreign women. Using what you know about conditional probability, check the probability that the gift was offered to a Portuguese citizen, knowing that it was a woman.
The derivative of a power is obtained just by subtracting 1 from the power True or false
Determine the correct value: A company knows that invoices pending collection have a normal distribution with a mean of $1.65 million, with a standard deviation of $0.2 million, then: The probability that an invoice pending collection has an amount that is within more than 2 deviations below the mean, is:
Elliot opened a savings account and deposited $5000.00 as principal. The account earns 4% interest, compounded annually. How much interest will he earn after 5 years? Round your answer to the nearest cent.
Suppose SAT reading scores are normally distributed with a mean of 496 and a standard deviation of 109. The University plans towards scholarships for students who scores are in the top 7%. What is the minimum score required for the scholarship round your answer to the nearest whole number.
The expected market return is 13,86% and the risk free rate 1%. What would then be the risk premium on the common stocks of a company which beta is 1,55? (in %, 2 decimal places)
Identify a pattern in the list of numbers.Then use this pattern to find the next number. 37,31,25,19,13
Pedro had 80% of the amount needed to buy a game. Of this amount, you spent 15% on a watch and therefore, you will need to add another R$640.00 to purchase this game. Is the value of the game?
Task 1 angel has 3 quarters 3/8 of a tank of gasoline and Miguel 7/8, who has more gasoline? number line on number line
Show this compound proposition to be true or false. Paris is the capital of England or Rome is the capital of Italy
When Sara was 15 years old, an uncle left her as inheritanceà a sum of 10,000 euros which he invested in a bank that applies the interest rate of 2,5% annual. Today Sara is 18 years and wants to buy a'car, how much she can ò withdraw from the bank?
Give an example of a function defined in R that is continuous in all points, except in the set Z of integers.
A multiple choice exam is made up of 10 questions; Each question has 5 options and only one of them is correct. If a person answers at random, what is the probability of answering only 3 good questions?
2 - 6x = -16x + 28
16-(x²+x+2)²
In a school playground When going out for recess, 80 men and 75 women coexist, the Patio measures 10 meters For 40 meters (what will be the population density in the break
A person travels by car from one city to another with different constant speeds between pairs of cities. She drives for 55.0 min at 100.0 km/h, 14.0 min at 65.0 km/h, and 45.0 min at 60.0 km/h and spends 20.0 min eating lunch and buying gas. (a) Determine the average speed for the trip.