C-Town Brewery brews two beers: Expansion Draft and Burning River. Expansion Draft sells for $12 per barrel, while Burning River sellsfor $7 per barrel. Producing a barrel of Expansion Draft takes 3 pounds of corn and 2 pounds of hops. Producing a barrel of BurningRiver requires 5 pounds of com, 7 pounds of rice, and 7 pounds of hops. The brewery has 600 pounds of corn, 530 pounds of rice,and 350 pounds of hops.Assuming a linear relationship, use Excel Solver to determine the optimal mix of Expansion Draft and Burning River that maximizes C-Town's revenue.Note: Leave no cells blank - be certain to enter "O" wherever required. Round your answers to 2 decimal places.Barrels of expansion draftBarrels of burning riverTotal salesComRiceHopsResources Used

Problem Details:Products: Expansion Draft, Burning RiverSelling Price:Expansion Draft: $12 per…

Answered: C-Town Brewery brews two beers:…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Nervana Soy Products (NSP) buys soybeans and processes them into other soy products. Each ton of soybeans that NSP purchases for $350 can be converted for an additional $210 into 650 lbs of soy meal and 100 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.32 and soy oil can be sold in bulk for $4.5 per gallon. NSP can process the 650 pounds of soy meal into 750 pounds of soy cookies at an additional cost of $300. Each pound of soy cookies can be sold for $2.32 per pound. The 100 gallons of soy oil can be packaged at a cost of $230 and made into 400 quarts of Soyola. Each quart of Soyola can be sold for $1.15. Read the requirements. Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at splitoff method and (b) NRV method. a. First, allocate the joint cost using the Sales value at splitoff method. (Round the weights to three decimal places and joint costs to the nearest dollar.) Sales value of total production at splitoff…
A beverage company is evaluating the production of a beverage drink that requires 600 kg of sugar. The company has 275 kg of sugar in stock that was purchased in the past for RO 2 per kg. The company no longer has any use for sugar. The old stock of sugar could be sold for RO 1.5 per kg. The current purchase price for dry nuts is RO 2.5 per kg. What is the total relevant cost of sugar for the production of beverage drink? a. RO 687.5 b. RO 1,225 c. RO 1,775 d. RO 1,362.5
A 16-gallon beer keg yields about 200 12-oz servings. What would the beverage cost be ona keg costing $85.00? How about premium beer at $150.00? What would the selling pricesbe with 20 percent and 30 percent cost ratios?
Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen is $4.00, variable costs are $1.25 per dozen, and total fixed costs are $825.00. How many dozens of ears of corn must Corny and Sweet sell to breakeven?
* Your answer is incorrect. Hank Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon batch. 2,400 ounces of grape concentrate at $0.05 per ounce 54 pounds of granulated sugar at $0.40 per pound 60 lemons at $0.60 each 100 yeast tablets at $0.26 each 250 nutrient tablets at $0.15 each 2,900 ounces of water at $0.005 per ounce Hank estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used. Compute the standard cost of the ingredients for one gallon of wine. (Round intermediate calculations and final answer to 2 decimal places, e.g. 1.25.) Standard Cost Per Gallon $ 7.42
Ivanhoe's sells two products, a pepper relish with a selling price of $4.26 and a variable cost per jar of $1.84 and a blackberry marmalade with a selling price of $4.26 and a variable cost per jar of $1.74. Ivanhoe's expected sales are 860 jars of pepper relish and 1290 jars of blackberry marmalade. Fixed expenses are $7326. How many jars of blackberry marmalade will Ivanhoe's need to sell to break-even? O 886 O 1772 O 1063 O 2150
Company XYZ is a farming company. The company are famous for producing strawberries and blueberries. The variable cost of producing and selling one box of strawberries is $6, while the variable cost of producing and selling one box blueberries is $10. Each box of strawberries is selling for $20, while a box of blueberries sells for $26. The company produces and sells 5 boxes of strawberries for every 2 boxes of blueberries. Assuming a fixed cost of $204,000. How many boxes of blueberries need to be produced and sold to achieve breakeven? O a. None of the given answers O b. 2,000 800 O d. 10,000 О е. 4,000
Coronado Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon batch. 3,360 ounces of grape concentrate at $0.02 per ounce 54 pounds of granulated sugar at $0.55 per pound 60 lemons at $0.90 each 150 yeast tablets at $0.26 each 250 nutrient tablets at $0.14 each 2.400 ounces of water at $0.005 per ounce Coronado estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used. Compute the standard cost of the ingredients for one gallon of wine. (Round intermediate calculations and final answer to 2 decimal places, eg. 1.25) O Show Transcribed Text Coronado estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used. Compute the standard cost of the ingredients for one gallon of wine. (Round intermediate calculations and final answer to 2 decimal places, eg. 1.25.) Standard Cost Per…
Illion Soy Products (ASP) buys soybeans and processes them into other soy products. Each ton of soybeans that ASP purchases for $250 can be converted for an additional $180 into 700 lbs of soy meal and 80 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.08 and soy oil can be sold in bulk for $4 per gallon. ASP can process the 700 pounds of soy meal into 800 pounds of soy cookies at an additional cost of $370. Each pound of soy cookies can be sold for $2.08 per pound. The 80 gallons of soy oil can be packaged at a cost of $200 and made into 320 quarts of Soyola. Each quart of Soyola can be sold for $1.45. Read the requirements. Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at splitoff method and (b) NRV method. a. First, allocate the joint cost using the Sales value at splitoff method. (Round the weights to three decimal places and joint costs to the nearest dollar.) Sales value of total production at splitoff…
Michael Brown manufactures and sells homemade wine, and he wants to develop a standard cost per litre. The following are required for production of a 300-litre batch: 90.00 litres of grape concentrate at $1.40 per litre 40.50 kg of granulated sugar at $0.60 per kilogram 87.00 lemons at $0.60 each 72.00 yeast tablets at $0.25 each 69.00 nutrient tablets at $0.20 each 112.50 litres of water at $0.10 per litre Michael estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 20% of the lemons cannot be used. Calculate the standard cost of the ingredients for one litre of wine. (Round intermediate calculations and final answer to 3 decimal places, e.g. 1.251.) Standard cost of the ingredients for one litre of wine $
Gibson Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processes them into two different products: chicken drumsticks and chicken steak. From a standard batch of 15,000 pounds of raw chicken that costs $8,200, the company produces two parts: 2,000 pounds of drumsticks and 5,000 pounds of breast for a processing cost of $3,887. The chicken breast is further processed into 4,200 pounds of steak for a processing cost of $2,200. The market price of drumsticks per pound is $1.65 and the market price per pound of chicken steak is $4.20. If Gibson decided to sell chicken breast instead of chicken steak, the price per pound would be $2.40. Required a-1. Allocate the joint cost to the joint products, drumsticks and breasts, using weight as the allocation base. a-2. Calculate the gross profit for each product. a-3. If the drumsticks are producing a loss, should that product line be eliminated? b-1. Reallocate the joint cost to the…
Assume a company purchases honeycombs from beekeepers for $2.00 a pound. The honey can be sold in raw form for $3.20 a pound or it can be used to make honey drop candies. Each package of candies contains three-quarters of a pound of honey and can be sold for $4.40. In addition to the cost of the honey, making and selling each container of candies incurs additional variable costs of $1.10 per unit. The monthly fixed costs associated with making the candies include: Master candy-maker’s salary $ 3,550 Depreciation of candy-making equipment 400 Salary of salesperson dedicated to this product 2,000 Total fixed costs $ 5,950 The candy-making equipment does not wear out through use and it has no resale value. Assuming the company makes and sells 8,000 containers of candy, what is the financial advantage (disadvantage) of continuing to process raw honey into candies? Multiple Choice $(5,150) $(4,750) $1,650 $1,250

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