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
107 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)
What are the major and minor axes lengths of the hyperbola with equation (x^2/9) - (y^2/16) = 1?
+
What is the slope of a line passing through the points (3, 5) and (9, 11)?
+
What is the value of sin(45 degrees) + cos(30 degrees) when simplifying using the Trigonometric ratio formulas?
+
New questions in Mathematics
3(2+x)-2(2x+6)=20-4x
A, B, C and D are numbers; If ABCD = 23, What is the result of ABCD BCDA CDAB DABC operation?
Determine the absolute extrema of the function 𝑓(𝑥)=𝑥3−18𝑥2 96𝑥 , on the interval [1,10]
The function g:Q→Q is a ring homomorphism such that g(3)=3 and g(5)=5. What are the values of g(8) and g(9)?
Identify a pattern in the list of numbers.Then use this pattern to find the next number. 37,31,25,19,13
A National Solidarity Bond offers A 5 year bond offering a gross return of 15% Calculate the AER for this investment. (Give your answer to two decimal places, no need for the percent or € sign in your answer)
Prove that it is not possible to arrange the integers 1 to 240 in a table with 15 rows and 16 columns in such a way that the sum of the numbers in each of the columns is the same.
During a fishing trip Alex notices that the height h of the tide (in metres) is given by h=1−(1/2)*cos(πt/6) where t is measued in hours from the start of the trip. (a) Enter the exact value of h at the start of the trip in the box below.
User Before the election, a poll of 60 voters found the proportion who support the Green candidate to be 25%. Calculate the 90% confidence interval for the population parameter. (Give your answers as a PERCENTAGE rounded to TWO DECIMAL PLACES: exclude any trailing zeros and DO NOT INSERT THE % SIGN) Give the lower limit of the 90% confidence interval Give the upper limit of the 90% confidence interval
Solve the equation: sin(2x) = 0.35 Where 0° ≤ x ≤ 360°. Give your answers to 1 d.p.
How to do 15 x 3304
30y - y . y = 144
Let v be the set of all ordered pairs of real numbers and consider the scalar addition and multiplication operations defined by: u+v=(x,y)+(s,t)=(x+s+1,y+t -two) au=a.(x,y)=(ax+a-1,ay-2a+2) It is known that this set with the operations defined above is a vector space. A) calculate u+v is au for u=(-2,3),v=(1,-2) and a=2 B) show that (0,0) #0 Suggestion find a vector W such that u+w=u C) who is the vector -u D) show that axiom A4 holds:-u+u=0
A function is considered exponential when it has a base with positive values greater than zero and different from one, where the exponent is an unknown. An important characteristic of exponential functions is that they show rapid growth or decay as an independent variable increases or decreases. Given the function 25^(x+3)=125, it is calculated that x has the value of
viii. An ac circuit with a 80 μF capacitor in series with a coil of resistance 16Ω and inductance 160mH is connected to a 100V, 100 Hz supply is shown below. Calculate 7. the inductive reactance 8. the capacitive reactance 9. the circuit impedance and V-I phase angle θ 10. the circuit current I 11. the phasor voltages VR, VL, VC and VS 12. the resonance circuit frequency Also construct a fully labeled and appropriately ‘scaled’ voltage phasor diagram.
17. A loan for $104259 is taken out for 10 years with an annual interest rate of 9.4%, compounded quarterly. What quarterly payment is required to pay the loan off in 10 years? Enter to the nearest cent (two decimals). Do not use $ signs or commas in the answer.
Given two lines 𝐿1: 𝑥 + 4𝑦 = −10 and 𝐿2: 2𝑥 − 𝑦 = 7. i. Find the intersection point of 𝐿1 and 𝐿2.
if y=1/w^2 yw=2-x; find dy/dx
9n + 7(-8 + 4k) use k=2 and n=3
An export company grants a bonus of $100,000 pesos to distribute among three of its best employees, so that the first receives double the second and the latter receives triple the third. How much did each person receive?