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.
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.
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.
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.
Transcribed Image Text:### 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
Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.
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