What is the maximum contribution that Berry Ltd can make given the limited number of labour hours available? Give your answer to the nearest whole pound. Do NOT include a E sign in your answer. If entering thousands, do NOT include a comma.

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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The following information relates to questions 20 and 21:
Berry Ltd makes a range of juices, details of which are shown below.
Orange Juice sells for £2.00 per carton and uses 0.2 labour hours per carton
Apple Juice sells for £2.30 and carton 0.3 labour hours per carton
Cranberry Juice sells for £2.30 per carton and uses 0.3 labour hours per carton
Direct Materials are: E1 per carton for Orange, £1.20 per carton for Apple and £0.90 per carton for Cranberry.
Standard direct wages are £3 per hour
Variable overheads are £0.05 per carton for all products
In the short term, direct labour hours are restricted to no more than 1,650 hours. Demand for each type of juice will not exceed
3,000 cartons.
I.
What is the maximum contribution that Berry Ltd can make given the limited number of labour hours available?
Give your answer to the nearest whole pound. Do NOT include a E sign in your answer. If entering thousands, do NOT include a
comma.
Blank 1
Blank 1
Add your answer
Transcribed Image Text:The following information relates to questions 20 and 21: Berry Ltd makes a range of juices, details of which are shown below. Orange Juice sells for £2.00 per carton and uses 0.2 labour hours per carton Apple Juice sells for £2.30 and carton 0.3 labour hours per carton Cranberry Juice sells for £2.30 per carton and uses 0.3 labour hours per carton Direct Materials are: E1 per carton for Orange, £1.20 per carton for Apple and £0.90 per carton for Cranberry. Standard direct wages are £3 per hour Variable overheads are £0.05 per carton for all products In the short term, direct labour hours are restricted to no more than 1,650 hours. Demand for each type of juice will not exceed 3,000 cartons. I. What is the maximum contribution that Berry Ltd can make given the limited number of labour hours available? Give your answer to the nearest whole pound. Do NOT include a E sign in your answer. If entering thousands, do NOT include a comma. Blank 1 Blank 1 Add your answer
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