5. A supplier has offered us 1200 pounds of filberts for $950. Should these filberts be purchased? If yes, how much would profits increase? Need explanation for the answer please Different nuts come from different suppliers. They are shipped in bulk containers and ordering a partial container is notpossible. The currently available container sizes and costs are as follows:Type of NutAlmondContainer Size (pounds)Cost per Container$78006000$7350$7150Brazil7500Filbert7500Ресan6000$7200Walnut7500$7450One container of each of the types of nuts has been ordered and is on the way.The sales and marketing teams have projected that initial demand for the different types of mixes will be as follows:Type of MixRegularDeluxeOrders (pounds)10,0005,000Holiday3,000The president of Brown & Haley wants to commit to producing enough of the various mixes to meet the projected initialdemand, even if not immediately profitable, in order to introduce these new mixes to the market. Current IssuesOne of the biggest issues facing this company is the rise in prices of raw materials, especially the iconic almond, whichdue to drought in California has seen a price rise in recent years. In order to diversify their product line, Brown & Haleyhas started to expand its repertoire to including other nuts, such as cashews and macadamia nuts. They also have aproject underway to test a new product line of packaged mixed nuts. Note that this scenario is fictional and the detailsdo not represent actual operations of Brown & Haley.The ScenarioThe company is considering three nut mixes for inclusion in the new product line: Regular Mix, Deluxe Mix, and HolidayMix. Each mix is made from 5 nuts in different combinations:The Regular Mix consists of 15% almonds, 25% Brazil nuts, 25% filberts, 10% pecans, and 25% walnutsThe Deluxe Mix consists of 20% of each type of nutThe Holiday Mix consists of 25% almonds, 15% Brazil nuts, 15% filberts, 25% pecans, and 20% walnutsAn accountant at Brown & Haley completed a cost analysis and determined that the profit contribution per pound is$1.65 for the Regular Mix, $1.90 for the Deluxe Mix, and $2.35 for the Holiday Mix.

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Business

Accounting

Need explanation for the answer

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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