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 result when the mixed number 3 and 1/2 is multiplied by the factored number (2^3 × 5^2 × 7), followed by taking the cube root and rounding to the nearest whole number?
+
Math Question: Find the equation of a circle centered at (3, -2) with a radius of 5.
+
Question: What is the vertex of the quadratic function y = -2x^2 + 4x - 1?
+
New questions in Mathematics
what is 456456446+24566457
The length and breadth of my rectangular vegetable garden is 12,5m and 7,25m respectively. What is the perimeter of the garden?
58+861-87
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.
(6.2x10^3)(3x10^-6)
Find the measures of the sides of ∆KPL and classify each triangle by its sides k (-2,-6), p (-4,0), l (3,-1)
Determine the momentum of a 20 kg body traveling at 20 m/s.
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)
How many anagrams of the word STROMEC there that do not contain STROM, MOST, MOC or CEST as a subword? By subword is meant anything that is created by omitting some letters - for example, the word EMROSCT contains both MOC and MOST as subwords.
The physician orders 15mg of tramadol(liquid). On hand is 30mg/2mL vials. How many mL will the MA administer?
In the telephone exchange of a certain university, calls come in at a rate of 5 every 2 minutes. Assuming a Poisson distribution, the average number of calls per second is: a) 1/8 b) 1/12 c) 1/10 d) 2/5 e) 1/24
A researcher is interested in voting preferences on change of the governing constitution in a certain country controlled by two main parties A and B. A questionnaire was developed and sent to a random sample of voters. The cross tabs are as follows Favour Neutral Oppose Membership: Party A 70 90 85 Party B 50 50 155 Test at α = 0.05 whether party membership and voting preference are associated and state the conditions required for chi-square test results to be valid.
48 kg of 30% sulfuric acid in a mixture of 10% and 40% sulfuric acid arose. How many kilograms were each of the original solutions?
1. A jeweler has two gold bars, with 80% purity and the other with 95% purity. How much of each must be melted to obtain a 5 kilo ingot with 86% purity?
Solve for B write your answer as a fraction or as a whole number. B-1/7=4
An election ballot asks voters to select three city judges from a group of 12 candidates. How many ways can this be done?
calculate the product of 4 and 1/8
How many digits are there in Hindu-Arabic form of numeral 26 × 1011
5a-3.(a-7)=-3
In a cheese factory, one pie costs 3800 denars. The fixed ones costs are 1,200,000 denars, and variable costs are 2,500 denars per pie. To encounter: a) income functions. profit and costs; b) the break-even point and profit and loss intervals.