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Problem:

Hilltop Coffee manufactures a coffee product by blending three types of coffee beans. The cost per pound and available pounds are as follows: Bean 1: .50/pound 500 lbs available Bean 2: .70/pound 600 available lbs. Bean 3: .45/pound and 400 pounds available. Consumer tests with with coffee products were used to provide quality ratings on a 0 to 100 scale, with higher ratings indicating higher quality. Product-quality standards for the blended coffee require a consumer rating for taste to be at least 75 and a consumer rating to be at least 80. The aroma and taste ratings for coffee made from 100% of each bean are given in the following:

  • Bean 1: Aroma rating: 75 Taste rating: 86
  • Bean 2: Aroma rating: 85 Taste rating: 88
  • Bean 3: Aroma rating 60 Taste rating: 75

It is assumed taht the aroma and taste attributes of the coffee blend will be a weighted average of the attributes of the beans used in the blend.

Required:

Question 1: What is the minimum cost blend of the three beans that will meet the quality standards and provide 1000 pounds of the blended coffee product?

Question 2: What is the bean per pound of the coffee blend?

Question 3: Determine the aroma and taste ratings for the coffee blend.

Question 4: If additional coffee were to be produced, what would be the expected cost per pound?

Note: Please provide full description.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91170843

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