Homework 2 Sunblessed Juice

Homework 2 Sunblessed Juice - 1 2 3 4 5 6 7 8 9 10 11 12 13...

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Problem 3.7 Sunblessed Juice Company Revenues, variable costs Juice Bags Revenue/lb $1.50 $1.50 Variable cost/lb $1.05 $0.70 Grades used to make juice and bags Grade Juice Bags Used Available 6 0 120000 120000 120000 9 0 100000 100000 100000 Sold 0 220000 220000 220000 Required average quality Juice Bags 8 7 Quality constraints Juice Bags Actual 0 1620000 Required 0 1540000 Total variable cost $0 $154,000 Total revenue $0 $330,000 Profit $0 $176,000 Total Overall Profit $176,000 Sensitivity of amounts sold and profit to unit cost of a bag Variable Cost of Bagged Oranges Grade 6 for Juice Grade 6 for Bags Grade 9 for Juice Grade 9 for Bags Profit $0.50 0 120000 0 100000 $220,000 $0.60 0 120000 0 100000 $198,000 $0.70 0 120000 0 100000 $176,000 $0.80 0 120000 0 100000 $154,000 $0.90 0 120000 0 100000 $132,000 $1.00 0 120000 0 100000 $110,000 $1.10 26666.67 93333.33 53333 46666.67 $92,000 $1.20 26666.67 93333.33 53333 46666.67 $78,000 Sensitivity of amounts sold and profit to amount available of grade 9 Amount of Grade 9 Oranges Available
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