I need help with parts 3 and 4. See attachements below for template.Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 100,000 pounds of grade 9 oranges and 120,000 pounds of grade 6 oranges on hand. The average quality of oranges sold in bags must be at least 7, and the average quality of the oranges used to produce orange juice must be at least 8. Each pound of oranges that is used for juice yields a revenue of $1.50 and incurs a variable cost (consisting of labor costs, variable overhead costs, inventory costs, and so on) of $1.05. Each pound of oranges sold in bags yields a revenue of $1.50 and incurs a variable cost of $0.70.Determine how Sunblessed can maximize its profit.Use SolverTable to determine how a change in the cost per bag of oranges changes the optimal solution.Use SolverTable to determine how a change in the amount of grade 9 oranges available affects the optimal solution.Use SolverTable to determine how a change in the required average quality required for juice changes the optimal solution. **Selling Oranges and Orange Juice Analysis****Part 1:**This spreadsheet analysis examines the process of selling oranges and orange juice, breaking down revenue, variable costs, and usage details.---**Revenue and Variable Cost:**| | Bags | Cartons ||--------------------|-------|---------|| **Revenue** | 2 | 2.25 || **Variable cost** | 1.2 | 1.35 |---**Grade Details:**- **Grade 6**: - Oranges Used: 220,000 - Availability: 220,000 - **Breakdown (Bags/Cartons)**: - Bags: 193,333.333 - Cartons: 26,666.66667- **Grade 9**: - Oranges Used: 150,000 - Availability: 150,000 - **Breakdown (Bags/Cartons)**: - Bags: 96,666.66667 - Cartons: 53,333.33333**Total Sold:**- Bags: 290,000- Cartons: 80,000---**Bags and Cartons Required:**- Bags: 7 units (derived from actual and required; 7 and 8 correspond to required values)- Cartons: 8 units**Actual Usage vs. Required:**| | Bags | Cartons ||---------|----------|----------|| **Actual** | 2,030,000 | 640,000 || **Required** | 2,030,000 | 640,000 |---**Cost, Revenue, and Profit:**- **Variable Cost**: - Bags: 348,000 - Cartons: 108,000- **Revenue**: - Bags: 580,000 - Cartons: 180,000- **Profit**: - Bags: 232,000 - Cartons: 72,000- **Total Profit**: - 304,000---**Sensitivity Analysis (Variable Cost Adjustment)**:| Variable Cost | Bags | Cartons | Profit ||---------------|----------|----------|---------|| 1 | 290,000 | ### Oneway Analysis for Solver Model#### OverviewThis sheet showcases the results of a one-way sensitivity analysis carried out using the Solver model in the P4-50 worksheet. The table and accompanying chart display how variations in the Bag Cost (cell $B$5) affect different output cells.#### Table ExplanationThe table is organized as follows:- **Column A:** Variations in Bag Cost (cell $B$5).- **Columns B, C, and D:** Output results from cells $C$11, $B$11, and $F$30 for respective Bag Cost values.| Bag Cost ($B$5) | $C$11 | $B$11 | $F$30 ||-------------------|--------|--------|--------|| 1.05 | 370000 | 370000 | 370000 || 1.1 | 370000 | 351500 | 351500 || 1.15 | 80000 | 333000 | 333000 || 1.2 | 80000 | 318500 | 318500 || 1.25 | 80000 | 290000 | 290000 || 1.3 | 80000 | 275000 | 275000 || 1.35 | 80000 | 260500 | 260500 || 1.4 | 80000 | 246000 | 246000 || 1.45 | 80000 | 231500 | 231500 || 1.5 | 80000 | 217000 | 217000 |#### Chart Description- **Title:** Sensitivity of $C$11 to Bag Cost- **X-Axis:** Bag Cost ($B$5)- **Y-Axis:** Value of $C$11The chart presents a graphical representation of the sensitivity analysis results. The $C$11 values are plotted against different Bag Cost values.**Key Observations:**- When the Bag Cost ($B$5) increases from 1.05 to 1.1, the value of $C$11 remains constant at 370,000.- As the Bag Cost ($B$5) further increases beyond 1.15, the $C$11 value drops significantly

Profit maximization is the main aim of any entity. The profit can be maximized by performing two…

Answered: I need help with parts 3 and 4. See…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

I need help with parts 3 and 4. See attachements below for template.

Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 100,000 pounds of grade 9 oranges and 120,000 pounds of grade 6 oranges on hand. The average quality of oranges sold in bags must be at least 7, and the average quality of the oranges used to produce orange juice must be at least 8. Each pound of oranges that is used for juice yields a revenue of $1.50 and incurs a variable cost (consisting of labor costs, variable overhead costs, inventory costs, and so on) of $1.05. Each pound of oranges sold in bags yields a revenue of $1.50 and incurs a variable cost of $0.70.

Determine how Sunblessed can maximize its profit.
Use SolverTable to determine how a change in the cost per bag of oranges changes the optimal solution.
Use SolverTable to determine how a change in the amount of grade 9 oranges available affects the optimal solution.
Use SolverTable to determine how a change in the required average quality required for juice changes the optimal solution.

**Selling Oranges and Orange Juice Analysis**

**Part 1:**

This spreadsheet analysis examines the process of selling oranges and orange juice, breaking down revenue, variable costs, and usage details.

---

**Revenue and Variable Cost:**

| | Bags | Cartons |
|--------------------|-------|---------|
| **Revenue** | 2 | 2.25 |
| **Variable cost** | 1.2 | 1.35 |

---

**Grade Details:**

- **Grade 6**:
- Oranges Used: 220,000
- Availability: 220,000
- **Breakdown (Bags/Cartons)**:
- Bags: 193,333.333
- Cartons: 26,666.66667

- **Grade 9**:
- Oranges Used: 150,000
- Availability: 150,000
- **Breakdown (Bags/Cartons)**:
- Bags: 96,666.66667
- Cartons: 53,333.33333

**Total Sold:**

- Bags: 290,000
- Cartons: 80,000

---

**Bags and Cartons Required:**

- Bags: 7 units (derived from actual and required; 7 and 8 correspond to required values)
- Cartons: 8 units

**Actual Usage vs. Required:**

| | Bags | Cartons |
|---------|----------|----------|
| **Actual** | 2,030,000 | 640,000 |
| **Required** | 2,030,000 | 640,000 |

---

**Cost, Revenue, and Profit:**

- **Variable Cost**:
- Bags: 348,000
- Cartons: 108,000

- **Revenue**:
- Bags: 580,000
- Cartons: 180,000

- **Profit**:
- Bags: 232,000
- Cartons: 72,000

- **Total Profit**:
- 304,000

---

**Sensitivity Analysis (Variable Cost Adjustment)**:

| Variable Cost | Bags | Cartons | Profit |
|---------------|----------|----------|---------|
| 1 | 290,000 |

### Oneway Analysis for Solver Model

#### Overview

This sheet showcases the results of a one-way sensitivity analysis carried out using the Solver model in the P4-50 worksheet. The table and accompanying chart display how variations in the Bag Cost (cell $B$5) affect different output cells.

#### Table Explanation

The table is organized as follows:
- **Column A:** Variations in Bag Cost (cell $B$5).
- **Columns B, C, and D:** Output results from cells $C$11, $B$11, and $F$30 for respective Bag Cost values.

| Bag Cost ($B$5) | $C$11 | $B$11 | $F$30 |
|-------------------|--------|--------|--------|
| 1.05 | 370000 | 370000 | 370000 |
| 1.1 | 370000 | 351500 | 351500 |
| 1.15 | 80000 | 333000 | 333000 |
| 1.2 | 80000 | 318500 | 318500 |
| 1.25 | 80000 | 290000 | 290000 |
| 1.3 | 80000 | 275000 | 275000 |
| 1.35 | 80000 | 260500 | 260500 |
| 1.4 | 80000 | 246000 | 246000 |
| 1.45 | 80000 | 231500 | 231500 |
| 1.5 | 80000 | 217000 | 217000 |

#### Chart Description

- **Title:** Sensitivity of $C$11 to Bag Cost
- **X-Axis:** Bag Cost ($B$5)
- **Y-Axis:** Value of $C$11

The chart presents a graphical representation of the sensitivity analysis results. The $C$11 values are plotted against different Bag Cost values.

**Key Observations:**
- When the Bag Cost ($B$5) increases from 1.05 to 1.1, the value of $C$11 remains constant at 370,000.
- As the Bag Cost ($B$5) further increases beyond 1.15, the $C$11 value drops significantly

Expert Solution

Step by step

Solved in 2 steps with 11 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.