Problem 4. Deloras Dunnville Delights (DDD) is a pastry and candy firm. Three of its most popular items all contain a secret ingredient that makes those who consume them very happy with their purchase. Due to production issues of the supplier, it has become difficult to get the secret ingredient in the required quantities. The situation is expected to be resolved as of the first of January, but for the month of December only 200,000 teaspoons of the special ingredient will be available to the firm. Information for the three products follows: Blue Brownies Lavender Fudge Red Velvet Cupcakes Normal monthly capacity23,000 Normal monthly demand19,000 45,000 32,000 30,000 42,000 Selling price $4.75 $25.00 $15.00 DM $.40 $3.50 $1.20 DL .45 1.30 .85 VOH .12 1.05 .36 12.95 $18.80 FOH 1.48 $2.45 4.44 Total Cost 6.85 DLH .25 .95 .35 MH .55 .85 .20 TSP of secret ingredient 1.45 5.45 2.60 1. In order to maximize net income for the month of December, how many units of each product should the firm produce?

Problem 4. Deloras Dunnville Delights (DDD) is a pastry and candy firm. Three of its most popular items all contain a secret ingredient that makes those who consume them very happy with their purchase. Due to production issues of the supplier, it has become difficult to get the secret ingredient in the required quantities. The situation is expected to be resolved as of the first of January, but for the month of December only 200,000 teaspoons of the special ingredient will be available to the firm. Information for the three products follows: Blue Brownies Lavender Fudge Red Velvet Cupcakes Normal monthly capacity23,000 Normal monthly demand19,000 45,000 32,000 30,000 42,000 Selling price $4.75 $25.00 $15.00 DM $.40 $3.50 $1.20 DL .45 1.30 .85 VOH .12 1.05 .36 12.95 $18.80 FOH 1.48 $2.45 4.44 Total Cost 6.85 DLH .25 .95 .35 MH .55 .85 .20 TSP of secret ingredient 1.45 5.45 2.60 1. In order to maximize net income for the month of December, how many units of each product should the firm produce?

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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