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 is the product of 8 and 15?
+
Math Question: What is the derivative of f(x) = 3x^2 - 4x + 5 using the basic rules of derivatives?
+
What is the value of sin(45°) - cos(30°) + tan(60°)?
+
New questions in Mathematics
The gross domestic product the gdp for the United States in 2017 was approximately $2.05x10^3. If you wrote this number in standard notation , it would be 205 followed by how many zeros
3x+2/2x-1 + 3+x/2x-1 - 3x-2/2x-1
2.5 / 21.85
"If three wolves catch three rabbits in three hours, how many wolves would it take to catch a hundred rabbits in a hundred hours?" The answer is the number of response units.
To celebrate the five-year anniversary of a consultancy specializing in information technology, the administrator decided to draw 3 different qualification courses among its 10 employees. Considering that the same employee cannot be drawn more than once, the total number of different ways of drawing among employees is:
2.3/-71.32
7/6-(-1/9)
Identify a pattern in the list of numbers.Then use this pattern to find the next number. 37,31,25,19,13
In a store, a person carries 14 kilos of rice and 28 kilos of flour. In what ratio are the kilos found? (Remember to simplify until you reach an irreducible fraction)
There were no defectives in a sample of 1 light bulb does this sample provide sufficient evidence that in the warehouse with millions of light bulbs fewer than 10% are defective?
(24, -7) is on the terminal arm of an angle in standard position. Determine the exact values of the primary trigonometric functions.
The Humane Society has asked for our help again this week. Currently they are charging $50 for an adoption fee. Unfortunately they just pulled this number out of the air and do not know why they are charging this amount. They would like to charge an amount that covers all the adoption costs – both the variable costs for adoptions as well as the fixed cost for the kennel portion of the Humane Shelter operations. We can help them by doing a breakeven analysis. During a client meeting we gathered these facts. There are 2 part-time employees that each earn $1000 per month. The utilities for the kennel area (water, electricity) are $200 per month. The average food cost for animals in the kennel is $800 per month. In addition, each animal that is adopted receives a rabies vaccination that costs $4 and is micro-chipped that costs $6. At the current cost of $50, how many animals must be adopted to break-even? What would break-even be at a $60 adoption fee? What would break-even be if the fee were lowered to $40? The newspaper has suggested that the Humane Society advertise to increase pet adoptions. The package that they have recommended costs $1000 for a very small ad run every day for a month. If the Humane Society does this extra advertising, how will it affect breakeven? Based on what you have learned about elasticity, what price do you recommend for the adoption fee?
(6²-14)÷11•(-3)
A company dedicated to the manufacture of shirts sells the units at a price of $40, the cost of each shirt is $24, a commission is paid for the sale of a unit of shirt of $2 and its fixed costs are $3500 Determine the marginal contribution
2x-5-x+2=5x-11
00 piece jigsaw puzzle. the completed puzzle is 10x10. each piech connects to at least 2 other pieces. i plan to assemble by taking pieces out of box one by one. if i've already taken out 2 pieces that dont directly connect, what is the minimum number of additional pieces that i need to draw to in order to guarentee that the original 2 pieces connect?
Identify the slope and y intercept y=11+2/3x
It costs a manufacturer $2,500 to purchase the tools to manufacture a certain homemade item. If the cost for materials and labor is 60¢ per item produced, and if the manufacturer can sell each item for 90¢, find how many items must he produce and sell to make a profit of $2000?
The domain of the function f(x)=x+7x2−144 is (−∞,), ( ,), and ( , ∞).
To apply a diagnostic test, in how many ways can 14 students be chosen out of 25? if the order does not matter