Company makes two kinds of chocolates-caramels and nougats

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Reference no: EM131645866

Brunswick Confectionary Company makes two kinds of chocolates, caramels, and nougats. Each batch of 100 caramels requires 6 minutes in the dipping machine and 5 minutes of labor, and consumes $0.95 worth of raw material. Each batch of 100 nougats requres 5 minutes in the dippings machine and 7 minutes of labor, while consuming $0.85 of raw material.

The company also has a third product, a mix of caramels and nougats which must be between 46% and 54% caramels. The mixing process consumes 2 minutes of labor per batch of 100 mixed chocolates produced. No additional dipping machine time or raw material is needed.

For the coming week, the firm has already made firm commitments to deliver 300 batches of caramels, 200 batches of nougats, and 150 batches of mixed candy to its customers. Further demand can be stimulated by spending money on marketing promotions. Promotions apply seperately to each products. Each dollar spend on promoting a particular products increases demand for that products by five batches.

Caramels sell for $3.50 per batch, nougats for $3.85, and the mix for $4.25.

This week, 200 hours of dippign machine time are available at a unit cost of $6 per hour, while 180 hours of labor are available at $12 per hour.

Reference no: EM131645866

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