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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 220,000 pounds of grade 6 oranges and 150,000 pounds of grade 9 oranges on hand. The aver- age 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 $2.25 and in- curs a variable cost (consisting of labor costs, variable overhead costs, inventory costs, and so on) of $1.35. Each pound of oranges sold in bags yields a revenue of $2.00 and incurs a variable cost of $1.20. a.    Determine how Sunblessed can maximize its profit.

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 220,000 pounds of grade 6 oranges and 150,000 pounds of grade 9 oranges on hand. The aver- age 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 $2.25 and in- curs a variable cost (consisting of labor costs, variable overhead costs, inventory costs, and so on) of $1.35. Each pound of oranges sold in bags yields a revenue of $2.00 and incurs a variable cost of $1.20. a.    Determine how Sunblessed can maximize its profit.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Is part A correct (I attached my answers and excel formulas)?

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 220,000 pounds of grade 6 oranges and 150,000 pounds of grade 9 oranges on hand. The aver- age 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 $2.25 and in- curs a variable cost (consisting of labor costs, variable overhead costs, inventory costs, and so on) of $1.35. Each pound of oranges sold in bags yields a revenue of $2.00 and incurs a variable cost of $1.20.

a.    Determine how Sunblessed can maximize its profit. 

Window Help C *** Copy of M3 MAC Excel Assignment Template for mac ( Home Draw Page Layout Data Review View SolverTable SolverTal ab Calibri V V ✓ 11 General Paste B BI U ✓ ✓ A - $ % 9 ←0 .00 .00 ➜.0 V h Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off? H28 x ✓ fx A B C D E F G H T 1 Selling oranges and orange juice Range Names 2 3 Revenues, variable costs Available Mix -Model I$F$10:$F$11 -Model!$B$10:$C$11 -Model!$B$27 4 Revenue Profit Quality Required -Model 1$B$20:$C$20 Variable cost -Model!$B$22:$C$22 Model!$D$10:$D$11 Used Grades used to make juice and bags Grade 6 Available 220000 9 150000 Sold 14 Required average quality 15 16 17 18 Quality constraints 19 20 Actual 21 22 Required 23 24 Total variable cost 25 Total revenue 26 an 27 Profit 28 ra 29 30 31 32 33 34 35 36 P4-50 Model X W 5 6 7 8 9 10 11 12 S13 56 B AH Insert 2 P4-46 Model Ready Juice $2.25 $1.35 Juice 26666.666 53333.332 80000 Juice 8 Juice 640000 X 640000 $456,000 $760,000 $304,000 Formulas Bags Α΄ Α $2.00 $1.20 Bags Used 193333.328 220000 96666.664 150000 289999.992 Bags 7 Bags 2029999.944 X 2029999.944 P4-46 Sensitivity Analysis 2 2 ||| |||||| 問 <= P4-48 Model ♫ V CH P4-48 Sensitivity Analysis A P4-5
Transcribed Image Text:Window Help C *** Copy of M3 MAC Excel Assignment Template for mac ( Home Draw Page Layout Data Review View SolverTable SolverTal ab Calibri V V ✓ 11 General Paste B BI U ✓ ✓ A - $ % 9 ←0 .00 .00 ➜.0 V h Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off? H28 x ✓ fx A B C D E F G H T 1 Selling oranges and orange juice Range Names 2 3 Revenues, variable costs Available Mix -Model I$F$10:$F$11 -Model!$B$10:$C$11 -Model!$B$27 4 Revenue Profit Quality Required -Model 1$B$20:$C$20 Variable cost -Model!$B$22:$C$22 Model!$D$10:$D$11 Used Grades used to make juice and bags Grade 6 Available 220000 9 150000 Sold 14 Required average quality 15 16 17 18 Quality constraints 19 20 Actual 21 22 Required 23 24 Total variable cost 25 Total revenue 26 an 27 Profit 28 ra 29 30 31 32 33 34 35 36 P4-50 Model X W 5 6 7 8 9 10 11 12 S13 56 B AH Insert 2 P4-46 Model Ready Juice $2.25 $1.35 Juice 26666.666 53333.332 80000 Juice 8 Juice 640000 X 640000 $456,000 $760,000 $304,000 Formulas Bags Α΄ Α $2.00 $1.20 Bags Used 193333.328 220000 96666.664 150000 289999.992 Bags 7 Bags 2029999.944 X 2029999.944 P4-46 Sensitivity Analysis 2 2 ||| |||||| 問 <= P4-48 Model ♫ V CH P4-48 Sensitivity Analysis A P4-5
fx [. V ? Define Name v V V @ Use in Formula v Insert AutoSum Recently Financial Logical Text Function Used Date & Lookup & Math & More Name Time Reference Trig Functions Manager Create from Selection Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off? H28 fx A B C D E 1 Selling oranges and orange juice 2 3 Revehues, variable costs Juice Bags 5 Revenue 2.25 6 Variable cost 1.35 7 8 Grades used to make juice and bags 9 Grade Bags 10 6 193333.328 26666.666 53333.332 11 9 96666.664 -SUM(C10:C11) 12 Sold =SUM(B10:B11) 13 14 Required average quality 15 Juice Bags 16 8 17 18 Quality constraints 19 Juice Bags 20 Actual =SUMPRODUCT($A$10:$A$11,B10:B11) =SUMPRODUCT($A$10:$A$11,C10:C11) 21 >= > 22 Required =B12 B16 =C12 C16 23 e 24 Total variable cost =SUMPRODUCT(B6:C6,B12:C12) 25 Total revenue =SUMPRODUCT(B5:C5,B12:C12) 26 E 27 Profit =B25-824 28 ei 29 30 31 32 4 33 P4-46 Sensitivity Analysis P4-48 Sensitivity Analysis 34 35 36 Ready P4-46 Model JUN 8 B A Juice 2 1.2 7 P4-48 Model ZLE MacBook Pro @ Used -SUM(B10:C10) SUM(B11:C11) P4-50 Model A ♫ 00 C Trace Precedents Fx A Trace Dependents 165 FRemove Arrows ✓ Show Error Watch Formulas Checking Window t + G H 4. 220000 150000 F Available P4-50 Sensitivity Analysis 3 回 X W Range Names Available Mix Profit Quality Required Used Share + Comme Calculation Options Yes M -Model I$F$10:$F$11 -Model I$B$10:$C$11 =Modell$B$27 -Model 1$B$20:$C$20 -Model 1$B$22:$C$22 =Model !$D$10:$D$11 100%
Transcribed Image Text:fx [. V ? Define Name v V V @ Use in Formula v Insert AutoSum Recently Financial Logical Text Function Used Date & Lookup & Math & More Name Time Reference Trig Functions Manager Create from Selection Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off? H28 fx A B C D E 1 Selling oranges and orange juice 2 3 Revehues, variable costs Juice Bags 5 Revenue 2.25 6 Variable cost 1.35 7 8 Grades used to make juice and bags 9 Grade Bags 10 6 193333.328 26666.666 53333.332 11 9 96666.664 -SUM(C10:C11) 12 Sold =SUM(B10:B11) 13 14 Required average quality 15 Juice Bags 16 8 17 18 Quality constraints 19 Juice Bags 20 Actual =SUMPRODUCT($A$10:$A$11,B10:B11) =SUMPRODUCT($A$10:$A$11,C10:C11) 21 >= > 22 Required =B12 B16 =C12 C16 23 e 24 Total variable cost =SUMPRODUCT(B6:C6,B12:C12) 25 Total revenue =SUMPRODUCT(B5:C5,B12:C12) 26 E 27 Profit =B25-824 28 ei 29 30 31 32 4 33 P4-46 Sensitivity Analysis P4-48 Sensitivity Analysis 34 35 36 Ready P4-46 Model JUN 8 B A Juice 2 1.2 7 P4-48 Model ZLE MacBook Pro @ Used -SUM(B10:C10) SUM(B11:C11) P4-50 Model A ♫ 00 C Trace Precedents Fx A Trace Dependents 165 FRemove Arrows ✓ Show Error Watch Formulas Checking Window t + G H 4. 220000 150000 F Available P4-50 Sensitivity Analysis 3 回 X W Range Names Available Mix Profit Quality Required Used Share + Comme Calculation Options Yes M -Model I$F$10:$F$11 -Model I$B$10:$C$11 =Modell$B$27 -Model 1$B$20:$C$20 -Model 1$B$22:$C$22 =Model !$D$10:$D$11 100%
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