Determine the optimal product mix for kirkman brothers

Assignment Help Operation Management
Reference no: EM13919584

Kirkman Brothers ice cream parlors sell three different flavors of Dairy Sweet ice milk: chocolate, vanilla, and banana. Due to extremely hot weather and a high demand for its products, Kirkman has run short of its supply of ingredients: milk, sugar, and cream. Hence, Kirkman will not be able to fill all the orders received from its retail outlets, the ice cream parlors. Due to these circumstances, Kirkman decided to make the most profitable amounts of the three flavors, given the constraints on supply of the basic ingredients. The company will then ration the ice milk to the retail outlets.

Kirkman collected the following data on profitability of the various flavors, availabil- ity of supplies, and amounts required for each flavor.

 

Profit /

Milk

Usage/GallonSugar

Cream

Flavor

Gallon

(gallons)

(pounds)

(gallons)

Chocolate

$1.00

0.45

0.50

0.10

Vanilla

$0.90

0.50

0.40

0.15

Banana

$0.95

0.40

0.40

0.20

Maximum available

 

200

150

60

Determine the optimal product mix for Kirkman Brothers. What additional resources could be used profitably?

Reference no: EM13919584

Questions Cloud

Target capital structure-what is its cost of common equity : Patton Paints Corporation has a target capital structure of 35.60% debt and 64.40%common equity, with no preferred stock. Its before-tax cost of debt is 7.80%, and its marginal tax rate is 30.00%. The current stock price is $22.00. The last dividend ..
Disadvantages of selling combination of stocks and bonds : The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell your 1,000 shares of Apple stock, 1,000 EE Savings Bonds (with $100 denominations and 4.25% coupon rate) that are five years..
What would have been franklins average income tax rate : Suppose Franklin Corporation had pre-tax income of $300,000 in 2010 and the firm would have paid $100,250 in federal income taxes. What would have been Franklin’s average income tax rate?
Why culture­fair iq tests are not widely used : Question 1 Culture­fair IQ tests are not widely used because they Question 2 Most people assume there are more words in the English language that begin with the letter k than have the letter k in the third position. This may be because it is easie..
Determine the optimal product mix for kirkman brothers : Kirkman Brothers ice cream parlors sell three different flavors of Dairy Sweet ice milk: chocolate, vanilla, and banana. Determine the optimal product mix for Kirkman Brothers. What additional resources could be used profitably?
Investor stocks expected return exceeds : If in the opinion of a given investor a stock's expected return exceeds its required return, this suggests that the investor thinks
A cost can be either an asset or an expense : A cost can be either an asset or an expense.
Calculate the modified internal rate of return for project : Cost of project= $5,676.10 WACC= 11% Year 1 cash inflow $1000 year 2 cash inflow $1500 year 3 cash inflow $2000 year 4 cash inflow $3000 year 5 cash inflow $1600 Calculate the modified internal rate of return for this project.
Assuming the CAPM is correct : Stock A's beta is 1.5 and Stock B's beta is 0.5. Which of the following statements must be true, assuming the CAPM is correct. In equilibrium, the expected return on Stock B will be greater than that on Stock A. In equilibrium, the expected return on..

Reviews

Write a Review

Operation Management Questions & Answers

  Describing the issues your company must consider regarding

describing the issues your company must consider regarding each of the following environmental areas: economic, social-cultural, technological, and political-legal.

  Illustrate how you would coach a subordinate in organization

Illustrate how you would coach a subordinate in your organization to write a business report OR memo.

  How nontraditional work schedules might make

As a business employer, explain how nontraditional work schedules might make it easier for you to recruit employees.

  Supporting the supply chains performance

What is role of supply chain decisions on the success of a your firm or the firm that you are familiar with? Elaborate your response? Explain how the major drivers of supply chain performance (facilities, inventory, transport, information, sourcing a..

  Discuss the advantages of the using groups to make decisions

The CEO of your organization has developed two potential plans to help the organization cut costs. The CEO has asked you to form a group; the members of the group are to represent a cross-section of all the departments within the organization.

  Employee may be initiating ip theft

Discuss some possible clues that might tip off a manager that an employee may be initiating IP theft.

  How many work cycles should be timed to estimate

How many work cycles should be timed to estimate the average cycle time to within 2 percent of the sample mean with a confidence of 99 percent if a pilot study yielded these times (minutes): 5.2, 5.5, 5.8, 5.3, 5.5, and 5.1? The standard deviation..

  Determine the utilization and the efficiency

Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems? This is not necessarily . If the design capacity is relatively , the utilization could be even th..

  Discuss how you would manage a poor forecast.

Discuss how you would manage a poor forecast.

  What is the annual savings over the other design

Which design should be adopted if 125,000 products are sold each year? Show all your work.

  What is the difference between these abbreviations

What's the difference between these abbreviations, and how do they contribute to one's professional image?

  Federal government persuade a performing contractor

How can the Federal Government persuade a performing contractor to comply with the contract requirements for a complex acquisition? List available sources

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd