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:…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 9EB: Berettis Food Mart has 6,000 pounds of raw pork nearing its expiration date. Each pound has a cost...

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A brewery produces regular beer and a lower-carbohydrate "light" beer. Steady customers of the brewery buy 10 units of regular beer and 19 units of light beer monthly. While setting up the brewery to produce the beers, the management decides to produce extra beer, beyond that needed to satisfy customers. The cost per unit of regular beer is $32,000 and the cost per unit of light beer is $50,000. Every unit of regular beer brings in $200,000 in revenue, while every unit of light beer brings in $500,000 in revenue. The brewery needs at least $15,000,000 in revenue, and has determined that the total demand will be at least 45 units of beer. Complete parts ( is (a) and (b) (a) How much of each type of beer should be made so as to minimize total production costs? units of regular beer and units of light beer should be made, for a minimum total cost of $ (Type integers or decimals.)
Tulsa Milling buys oats at $0.60 per pound and produces TPM Oat Flour, TPM Oat Flakes, and TPM Oat Bran. The process of separating the oats into oat flour and oat bran costs $0.30 per pound. The oat flour can be sold for $1.50 per pound, the oat bran for $2.00 per pound. Each pound of oats has 0.2 pounds of oat bran and 0.8 pounds of oat flour. A pound of oat flour can be made into oat flakes for a fixed cost of $240,000 plus a variable cost of $0.60 per pound. Tulsa Milling plans to process 1 million pounds of oats in 20X0, at a purchase price of $600,000. Requirements 1. Allocate all the joint costs to oat flour and oat bran using the physical-units method. 2. Allocate all the joint costs to oat flour and oat bran using the relative-sales-value method. 3. Suppose there were no market for oat flour. Instead, it must be made into oat flakes to be sold. Oat flakes sell for $2.90 per pound. Allocate the joint cost to oat bran and oat flakes using the relative-sales-value method.…
The Delmar Beverage Company produces a premium root beer that is sold throughout its chain of restaurants in the Midwest. The company is currently producing 1,700 gallons of root beer per day, which represents 80% of its manufacturing capacity. The root beer is available to restaurant customers by the mug, in bottles, or packaged in six-packs to take home. The selling price of a gallon of root beer averages $13, and cost accounting records indicate the following manufacturing costs per gallon of root beer: Raw materials Direct labor Variable overhead Fixed overhead Total absorption cost $ 1.56 1.67 1.11 1.53 $ 5.87 In addition to the manufacturing costs just described, Delmar Beverage incurs an average cost of $1.05 per gallon to distribute the root beer to its restaurants. SaveMore Incorporated, a chain of grocery stores, is interested in selling the premium root beer in gallon jugs throughout its stores in the St. Louis area during holiday periods and has offered to purchase root…
Shannon’s distributes its beer through a wholesaler, Miller of Denton. The retail selling price for a six-pack of its typical craft beer is $12.00. The retailer’s cost per six-pack is $8.00. The wholesaler sells the beer to the retailer for this price. Shannon’s sells a six-pack to the wholesaler for $5.40. Shannon’s variable costs of production, packaging, and distribution are $3.60 per six-pack. Shannon’s has the following annual fixed operating and marketing costs: Marketing Costs $50,924 Consumer Advertising $35,421 Trade Promotion $30,000 Sales Promotion $18,000 What is Shannon’s annual break-even in six packs of beer sold?
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. 3,800 ounces of grape concentrate at $0.07 per ounce 54 pounds of granulated sugar at $0.45 per pound 60 lemons at $0.70 each 150 yeast tablets at $0.28 each 200 nutrient tablets at $0.17 each 1,900 ounces of water at $0.005 per ounce Hank estimates that 5% 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. Standard Cost Per Gallon $
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…
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. 2,375 ounces of grape concentrate at $0.04 per ounce 54 pounds of granulated sugar at $0.55 per pound 60 lemons at $0.65 each 150 yeast tablets at $0.29 each 200 nutrient tablets at $0.14 each 2,800 ounces of water at $0.005 per ounce Coronado estimates that 5% 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 Gallon $ s
Steven Garcia manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 57-gallon batch. 3,420 ounces of grape concentrate at $0.06 per ounce 60 pounds of granulated sugar at $0.30 per pound 65 lemons at $0.60 each 57 yeast tablets at $0.25 each 57 nutrient tablets at $0.20 each 2,930 ounces of water at $0.005 per ounce Steven estimates that 5% of the grape concentrate is wasted, 12% of the sugar is lost, and 26% 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
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…
Saskatchewan Soy Products (SSP) buys soy beans and processes them into other soy products. Each tonne of soy beans that SSP purchases for $280 can be converted for an additional $200 into 550 lbs of soy meal and 100 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.48, and soy oil can be sold in bulk for $4.75 per gallon. SSP can process the 550 lbs of soy meal into 700 lbs of soy cookies at an additional cost of $380. Each pound of soy cookies can be sold for $2.48 per pound. The 100 gallons of soy oil can be packaged at a cost of $200 and made into 400 quarts of Soyola. Each quart of Soyola can be sold for $1.35. Required 1. Allocate the joint cost to the cookies and the Soyola using: a. Sales value at splitoff method b. NRV method 2. Should the company have processed each of the products further? What effect does the allocation method have on this decision? www Requirement 1a. Allocate the joint cost to the cookies and the Soyola using the sales value at…
Tommy Tomato, Incorporated (TTI) sells organic canned tomato sauces. TTI spends $50,000 purchasing, cutting, washing, grinding, and straining tomatoes into 100,000 liters of plain tomato sauce ($0.50 per liter). At this point, TTI has two choices: a) sell the plain tomato sauce for $2 per liter; or b.) take the 100,000 liters of plain tomato sauce and process them further into a gourmet seasoned pizza sauce that can be sold for $3.10 per liter. The extra seasoning and processing required to convert the plain tomato sauce into gourmet pizza sauce costs TTI $0.75 per liter. TTI can choose to sell the plain tomato sauce as-is at the "split-off point" or decide to process the sauce further into the gourmet sauce. 1. If TTI sells the 100,000 liters of gourmet pizza sauce, how much sales revenue will TTI generate? If TTI decides to simply sell the 100,000 liters of plain tomato sauce without processing it any further, how much sales revenue would TTI generate instead? How much additional…

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