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Della Simpson Inc. sells two popular brands of cookies, Della's Delight and Bonnie's Bourbon. Della’s Delight goes through the Mixing and Baking departments, and Bonnie's Bourbon, a filled cookie, goes through the Mixing, Filling, and Baking departments. Michael Shirra, vice-president for sales, believes that at the current price, Della Simpson can sell all of its daily production of Della’s Delight and Bonnie's Bourbon. Both cookies are made in batches of 3,000 cookies. B (Click the icon to view the time required per batch and the total time available.) B (Click the icon to view the revenue and cost data.) Required Due to multiple constraints, a technique called linear programming or LP can be used to determine the number of each type of product that should be produced. LP models typically assume that all costs are either variable or fixed with respect to a single cost driver (units of output). We will use the three-step process in solving the LP problem. The three-step process is a very useful tool in finding the end result—optimal number of batches of each type of cookie that should be produced to maximize operating income. Step 1 determines what we are trying to maximize or minimize stated as an equation that will be used in step 3. Step 2 is determining the constraints for each department. These constraints are then used to calculate the coordinates of the corners of the area of feasible solutions that would be shown on a graph. Finally we come to step 3, the end result, determining which of the corner points (number of batches of each type of cookie) that would result in the greatest operating income. ' D Revenue and cost data Time required and total time available Revenue and cost data for each type of cookie are: The batch times (in minutes) for producing each type of cookie and the minutes available per Della's Bonnie's day are as follows: Delight Bourbon Department Minutes Revenue per batch $ 475 % 375 Mixing Filling Baking Variable cost per batch $ 175 % 125 Della’s Delight 30 0 10 Contribution margin per batch § 300 $ 250 Bonnie's Bourbon 15 15 15 Monthly fixed costs Minutes available per day 660 270 300 (allocated to each product) $ 18650 § 22,350