The investment cost of the fruit juice business was determined as 3,200,000 TL. The depreciation rate of the enterprise is determined as 10%. Fruit juice and concentrate are produced in equal amounts at the facility. The business operates 300 days a year and 12 hours a day. The maintenance and repair expenses of the enterprise are determined as 65,000 TL/year, the unexpected expenses are 36.000 TL/year, the fixed tax total is 82.000 TL/year, and the total personnel salaries are 300.000 TL/year. Fruit juice production cost was calculated as 2.6 TL/kg product and concentrate production cost as 6.8 TL/kg product. Fruit dry matter rate was 16%, fruit juice dry matter rate was 6%, and concentrated dry matter rate was 72%. Since the raw material price is 3.5 TL/kg of raw material, fruit juice and concentrate sales prices are 5.8 TL/kg and 32 TL/kg, what is the minimum raw material amount that must be processed per hour for the business to make a profit?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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The investment cost of the fruit juice business was determined as 3,200,000 TL. The depreciation rate of the enterprise is determined as 10%. Fruit juice and concentrate are produced in equal amounts at the facility. The business operates 300 days a year and 12 hours a day. The maintenance and repair expenses of the enterprise are determined as 65,000 TL/year, the unexpected expenses are 36.000 TL/year, the fixed tax total is 82.000 TL/year, and the total personnel salaries are 300.000 TL/year. Fruit juice production cost was calculated as 2.6 TL/kg product and concentrate production cost as 6.8 TL/kg product. Fruit dry matter rate was 16%, fruit juice dry matter rate was 6%, and concentrated dry matter rate was 72%. Since the raw material price is 3.5 TL/kg of raw material, fruit juice and concentrate sales prices are 5.8 TL/kg and 32 TL/kg, what is the minimum raw material amount that must be processed per hour for the business to make a profit?

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