TJ, Inc. makes three nut mixes for sale to grocery chains located in the Southeast. The three mixes, referred to as the Regular Mix, the Deluxe Mix, and the Holiday Mix, are made by mixing different percentages of five types of nuts. In preparation for the fall season, TJ, Inc. just purchased the following shipments of nuts at the prices shown: Type of Nut Shipment Amount (pounds) Cost per Shipment ($) Almond 6,100 7,500 Brazil 7,400 7,025 Filbert 7,400 6,750 Pecan 6,000 7,100 Walnut 7,400 7,875 The Regular Mix consists of 15% almonds, 25% Brazil nuts, 25% filberts, 10% pecans, and 25% walnuts. The Deluxe Mix consists of 20% of each type of nut, and the Holiday Mix consists of 25% almonds, 15% Brazil nuts, 15% filberts, 25% pecans, and 20% walnuts. An accountant at TJ, Inc. analyzed the cost of packaging materials, sales price per pound, and so forth, and determined that the profit contribution per pound is $1.70 for the Regular Mix, $2.05 for the Deluxe Mix, and $2.20 for the Holiday Mix. These figures do not include the cost of specific types of nuts in the different mixes because that cost can vary greatly in the commodity markets.   Customer orders already received are summarized here: Type of Mix Orders (pounds) Regular 10,000 Deluxe 3,000 Holiday 5,000 Because demand is running high, it is expected that TJ, Inc. will receive many more orders than can be satisfied. TJ, Inc. is committed to using the available nuts to maximize profit over the fall season; nuts not used will be given to a local charity. Even if it is not profitable to do so, TJ, Inc.'s president indicated that the orders already received must be satisfied. Managerial Report Perform an analysis of the TJ, Inc.'s product-mix problem, and prepare a report for the president of TJ, Inc. that summarizes your findings. Cost Per Pound of the Nuts Included A.  Determine the cost per pound of the nuts included in the Regular mix (in dollars). (Round your answer to two decimal places.) $  per pound B.  Determine the cost per pound of the nuts included in the Deluxe mix (in dollars). (Round your answer to two decimal places.) $  per pound C.  Determine the cost per pound of the nuts included in the Holiday mix (in dollars). (Round your answer to two decimal places.) $  per pound   D. Determine the optimal product mix (in pounds). Regular lb Deluxe lb Holiday lb E.  Determine the total profit contribution (in dollars). $  F.  Recommend how the total profit contribution can be increased if additional quantities of nuts can be purchased. (Give your answers in dollars per pound. Round your numerical values to two decimal places.) Based on the previous results we find that additional almonds are worth $         per pound, additional Brazil nuts are worth $       per pound, additional filberts are worth $       per pound, additional pecans are worth $       per pound, and additional walnuts are worth $       per pound. Which types of nuts would you recommend TJ, Inc. attempt to acquire. (Select all that apply.) Almond Brazil Filbert Pecan Walnut

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TJ, Inc. makes three nut mixes for sale to grocery chains located in the Southeast. The three mixes, referred to as the Regular Mix, the Deluxe Mix, and the Holiday Mix, are made by mixing different percentages of five types of nuts.

In preparation for the fall season, TJ, Inc. just purchased the following shipments of nuts at the prices shown:

Type of Nut

Shipment Amount (pounds)

Cost per Shipment ($)

Almond

6,100

7,500

Brazil

7,400

7,025

Filbert

7,400

6,750

Pecan

6,000

7,100

Walnut

7,400

7,875

The Regular Mix consists of 15% almonds, 25% Brazil nuts, 25% filberts, 10% pecans, and 25% walnuts. The Deluxe Mix consists of 20% of each type of nut, and the Holiday Mix consists of 25% almonds, 15% Brazil nuts, 15% filberts, 25% pecans, and 20% walnuts.

An accountant at TJ, Inc. analyzed the cost of packaging materials, sales price per pound, and so forth, and determined that the profit contribution per pound is $1.70 for the Regular Mix, $2.05 for the Deluxe Mix, and $2.20 for the Holiday Mix. These figures do not include the cost of specific types of nuts in the different mixes because that cost can vary greatly in the commodity markets.

 

Customer orders already received are summarized here:

Type of Mix

Orders (pounds)

Regular

10,000

Deluxe

3,000

Holiday

5,000

Because demand is running high, it is expected that TJ, Inc. will receive many more orders than can be satisfied. TJ, Inc. is committed to using the available nuts to maximize profit over the fall season; nuts not used will be given to a local charity. Even if it is not profitable to do so, TJ, Inc.'s president indicated that the orders already received must be satisfied.

Managerial Report

Perform an analysis of the TJ, Inc.'s product-mix problem, and prepare a report for the president of TJ, Inc. that summarizes your findings.

  • Cost Per Pound of the Nuts Included

A.  Determine the cost per pound of the nuts included in the Regular mix (in dollars). (Round your answer to two decimal places.)

$  per pound

B.  Determine the cost per pound of the nuts included in the Deluxe mix (in dollars). (Round your answer to two decimal places.)

$  per pound

C.  Determine the cost per pound of the nuts included in the Holiday mix (in dollars). (Round your answer to two decimal places.)

$  per pound

 

D. Determine the optimal product mix (in pounds).

Regular lb

Deluxe lb

Holiday lb

E.  Determine the total profit contribution (in dollars).

F.  Recommend how the total profit contribution can be increased if additional quantities of nuts can be purchased. (Give your answers in dollars per pound. Round your numerical values to two decimal places.)

Based on the previous results we find that additional almonds are worth $         per pound, additional Brazil nuts are worth $       per pound, additional filberts are worth $       per pound, additional pecans are worth $       per pound, and additional walnuts are worth $       per pound.

Which types of nuts would you recommend TJ, Inc. attempt to acquire. (Select all that apply.)

Almond

Brazil

Filbert

Pecan

Walnut

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