Kellpost Cereal Company sells four products: (1) Special L (a low-calorie, high-nutrition cereal); (2) Corn Bran (another low-calorie, high-nutrition cereal); (3) Admiral Smacks (a sugary cereal pitched at the children's market); and (4) Honey Pops (another sweet cereal pitched at the children's market). Kellpost has sufficient production capacity to produce a total of 10,000 boxes of cereal per month. For each of the past 16 months, Kellpost has kept track of the price and sales of each product. (These data are listed in the file P07_72.xlsx.) Market executives believe that Special L and Corn Bran might be substitutes for each other, as might be Admiral Smacks and Honey Pops. For example, this means that an increase in the price of Special L might raise the sales of Corn Bran. The variable cost of bringing a box of each cereal to market is as follows: Special L, $2.00; Corn Bran, $2.20; Admiral Smacks, $2.30; Honey Pops, $2.40. a. Use the given information to determine the price for each cereal that will enable Kellpost to maximize profits. If needed, round your answers to two decimal digits. b. Now suppose that Kellpost can increase its monthly production capacity. The cost (per year) of doing this is $20,000 per 1000 boxes of added monthly capacity. Can you determine an optimal capacity level? If an answer is zero, enter "0
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Kellpost Cereal Company sells four products: (1) Special L (a low-calorie, high-nutrition cereal); (2) Corn Bran (another low-calorie, high-nutrition cereal); (3) Admiral Smacks (a sugary cereal pitched at the children's market); and (4) Honey Pops (another sweet cereal pitched at the children's market). Kellpost has sufficient production capacity to produce a total of 10,000 boxes of cereal per month. For each of the past 16 months, Kellpost has kept track of the price and sales of each product. (These data are listed in the file P07_72.xlsx.) Market executives believe that Special L and Corn Bran might be substitutes for each other, as might be Admiral Smacks and Honey Pops. For example, this means that an increase in the price of Special L might raise the sales of Corn Bran. The variable cost of bringing a box of each cereal to market is as follows: Special L, $2.00; Corn Bran, $2.20; Admiral Smacks, $2.30; Honey Pops, $2.40.
a. Use the given information to determine the price for each cereal that will enable Kellpost to maximize profits. If needed, round your answers to two decimal digits.
b. Now suppose that Kellpost can increase its monthly production capacity. The cost (per year) of doing this is $20,000 per 1000 boxes of added monthly capacity. Can you determine an optimal capacity level? If an answer is zero, enter "0".
![A
B
D
E
F
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K
1 Cereal datal
2
3 Historical data
4
Prices
Sales
Special L
Admiral Smacks
Honey Pops
Honey Pops
$4.35
5
Month
Corn Bran
Admiral Smacks
Special L
Corn Bran
6
1
$4.20
$4.10
$4.22
3251
4933
3463
5467
7
2
$3.90
$4.30
$4.12
$4.18
3524
4629
3471
5607
8
3
$4.10
$4.50
$4.32
$4.22
3349
4456
3362
5494
9
4
$4.00
$4.40
$3.86
$4.13
3380
4497
3875
5507
10
$3.80
$3.80
$3.99
$4.56
3447
5193
3726
5084
11
$3.90
$3.90
$3.76
$3.78
3560
4885
3961
6063
12
7
$3.80
$3.70
$4.07
$3.89
3689
5344
3669
5953
13
8.
$4.30
$3.60
$4.05
$3.97
3013
5522
3654
5959
14
$3.60
$3.95
$4.09
$4.22
3824
4935
3720
5470
15
10
$3.50
$4.06
$4.12
$4.13
3760
4845
3641
5659
16
11
$3.40
$4.12
$4.13
$4.50
4047
4848
3655
5183
17
12
$3.70
$4.12
$5.16
$4.00
3746
4706
2430
6110
18
13
$3.80
$4.20
$4.17
$4.06
3722
4665
3614
5683
19
14
$3.90
$4.28
$4.00
$4.22
3461
4653
3652
5464
20
15
$4.00
$4.10
$3.90
$4.12
3322
4847
3881
5660
21
16
$4.10
$3.90
$3.96
$3.94
3320
5090
3751
5932
22
23
24
25](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F29510f02-7cd4-4c69-a0b4-e8a2af3d4d50%2Fb01868da-4f84-49e6-8c8c-55013f356dea%2Ffsxhohb_processed.png&w=3840&q=75)
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