Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Abotte Products produces three products, A, B, and C. The company can sell up to 300 pounds of each product at the following prices (per pound): product A, $10; product B, $12; product C, $20. Abotte purchases raw material at $5 per pound. Each pound of raw material can be used to produce either one pound of A or one pound of B. For a cost of $3 per pound processed, product A can be converted to 0.6 pound of product B and 0.4 pound of product C. For a cost of $2 per pound processed product B can be converted to 0.8 pound of product C.

Determine how Abotte can maximize its profit.

Determine how much of A to make, how much of A to reprocess into B and C, how much of B to make, and how much of B to reprocess into C. That would be 4 changing cells. Remember that how much you make won't always be how much you have to sell. If I make 200 pounds of A but reprocess change 50 pounds, I will only have 150 pounds of A to sell (200 less the 50 reprocessed) but I get some B and C to sell.

Here are some check figures:

If I make 20 pounds of A and 20 pounds of B, I should use 40 pounds of raw material. Then if I convert half of each, I should have these quantities to sell:

Product A 10
Product B 16
Product C 12

The profit with this plan would be: $282

Hint: The optimal profit I got was: $6,975

Create a spreadsheet in excel. Run Solver to get the optimal result.

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M928423

Have any Question? 


Related Questions in Basic Finance

1 why should investors review their personal financial

1. Why should investors review their personal financial circumstances from time to time? 2. Why is asset allocation important? 3. List the strategies for increasing returns on a bond portfolio. 4. What are the tools of a ...

Part a answer each of the following questions in a

Part A: Answer each of the following questions in a composition of one to two paragraphs, or perform calculations as requested. 1. Define liquidity risk, default risk and taxability risk, and explain how these risks rela ...

Something that you could have focused on in discussion

Something that you could have focused on in Discussion Question #3 on NASA is its relatively new environmental research mission and its Earth Science division. President-elect Trump now wants to excise it from the budget ...

What is the objective of an industry self-regulatory

What is the objective of an industry self-regulatory organization? Compare and contrast three types of futures trading costs? Compare and contrast cash settlement with physical settlement? Identify the typical characteri ...

Define a shear joint define an axial shear joint define

Define a shear joint? Define an axial shear joint? Define faying surface? Define friction-type joint? Define bearing-type joint? Draw a graph illustrating the way a shear joint fails? Is bolt preload important in a shear ...

1 why do a firms stockholders hold a valuable default

1. Why do a firm's stockholders hold a valuable "default option"? How could this option induce stockholders to employ high levels of financial leverage? 2. All else equal, which firm would face a greater level of financi ...

1 why do researchers use factor analysis2 imagine that you

1. Why do researchers use factor analysis? 2. Imagine that you conducted a factor analysis on a set of variables that were uncorrelated with one another. How many factors would you expect to find? Why?

1 define an appraisal2 what qualifications does a mortgage

1. Define an appraisal. 2. What qualifications does a mortgage lender require of an appraiser? 3. Name the three most common appraisal report formats and how they differ in content and use. 4. Describe each of the three ...

Explain the difference between path-dependent options and

Explain the difference between path-dependent options and path-independent options and give examples of each? Give an example of a situation in which someone might wish to use a barrier option? Explain the advantages and ...

1 distinguish between the four types of relational

1. Distinguish between the four types of relational collaborative arrangements. Provide an example of each. 2. What do you believe will be the impact of the Internet on market distribution by 2010? 3. What is a shippers ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen