A company gets three byproducts A, B and C, in quantities of 6000, 10,000, and 5000 tons, respectively/month from the manufacturing process of their main product. The company can make a fertilizer consisting of 30% of A, 50% of B, and 20% of C and sell it at a pro t $5/ton. They can also make a construction material consisting of 40% of A, 30% of B, and 30% of C and sell it at a pro t $4/ton. Any leftover quantities of A,B, and C can be given away to a company dealing with bulk materials. QUESTION 3 Based on recent market information, the company finds that the demand for the fertilizer is reduced to 15,000 tons/month. What is the new optimal plan for the company? NOTE: The solution to question 3 is the ONLY answer needed.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Accounting
A company gets three byproducts A, B and C, in
quantities of 6000, 10,000,
and 5000 tons, respectively/month from the
manufacturing process of their main product.
The company can make a fertilizer consisting of
30% of A, 50% of B, and 20% of C and
sell it at a pro t $5/ton. They can also make a
construction material consisting of 40%
of A, 30% of B, and 30% of C and sell it at a pro
t $4/ton. Any leftover quantities of
A,B, and C can be given away to a company
dealing with bulk materials.
QUESTION 3
Based on recent market information, the
company finds that the demand for the
fertilizer is reduced to 15,000 tons/month. What
is the new optimal plan for the company?
NOTE: The solution to question 3 is the ONLY
answer needed.
Transcribed Image Text:Accounting A company gets three byproducts A, B and C, in quantities of 6000, 10,000, and 5000 tons, respectively/month from the manufacturing process of their main product. The company can make a fertilizer consisting of 30% of A, 50% of B, and 20% of C and sell it at a pro t $5/ton. They can also make a construction material consisting of 40% of A, 30% of B, and 30% of C and sell it at a pro t $4/ton. Any leftover quantities of A,B, and C can be given away to a company dealing with bulk materials. QUESTION 3 Based on recent market information, the company finds that the demand for the fertilizer is reduced to 15,000 tons/month. What is the new optimal plan for the company? NOTE: The solution to question 3 is the ONLY answer needed.
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