JP Molasses The analysis is divided into three sections: Part I: description of the optimization model Part II: solution to the present problem Part III: recommendations on future improvements to increase profits Part I Objective function: J.P. Molasses' goal is to maximize the profit generated from the refining of raw sugar into molasses and its byproducts and then shipping those products to customers. Decision variables: a. The amount of raw sugar shipped from eight suppliers to two processing plants b. The amount of molasses and byproduct shipped to seven customers (a majority of which are internal and therefore don't generate profit accounted for in this model). c. Because these variables represent amount shipped they cannot be negative. Constraints: a. Total raw sugar shipped from each supplier to each refinery must be less than or equal to the amount available to ship b. Total molasses shipped from each refinery to each customer must be equal to the quantity required by that customer. c. The two processing plants must operate at between 50-100% of capacity d. The amount of purified sugar produced at the Charleston plant is limited to 2,000,000 pounds per month because of storage constraints e. Total molasses shipped to customers (including excess) must be less than or equal to the total molasses produced Part II There are two solutions that provide the optimal profit given the current constraints under which JP Molasses operates. Under these conditions, the optimal profit is $63,571. This profit margin is achieved in both cases with revenue of $942,354 and cost of $412,333 for material purchased and $466,450 for fixed and variable costs in processing, for total cost of $878,783. This optimal profit can be achieved with two different allocations of raw sugar shipments to processing plants, as below : Cell Name Value from Answer 1 Value from Answer 2 $B$6 Spectra Charleston 1000 160 $C$6 Spectra Atlanta 0 840 $B$9 Omega Charleston 530 1370
AICPA Audit Procedures for Agricultural Producers Pt.1 Ch5.02 ?Growing crops and developing animals to be held for sale should be valued at the lower of cost or market.?
Moncrief Company agreed to pay Jim Lester 20% of the gross profit made from the 2013 sales of the Zelenex. Between January 1, 2013 and December 28, 2013, Moncrief’s total available units for sale were, 50,000 units of Zelenex for $30.00 per unit ($1,500,000). Also in addition to the former activities, Moncrief sold 35,000 units for $60.00 per unit ($2,100,000). Moncrief Company uses periodic LIFO inventory method as a result, Jim Lester was to receive $210,000. (Textbook pg.469)
Rocket-Blast, LLC, a beverage maker, has seen its profit margins reduced which presents a real problem for the company going forward (Precord & Macdonald, nd). Management has decided that operating costs must be reduced in order to increase profit margins to
Explanation: For our first product, the Isolation, consisting of Fries and Drinks, expected demand for the month of August is 373 units. One unit of isolation needs potato fries, cooking oil, juice powder and water, cup and straw. Total quantity for the fries would be 46,563.30 grams (Fries 125 grams/serving); this would consume a total volume of 12,404.469ml of oil (Oil 33.3ml); for the juice 4,656.33grams of powdered juice along with 5,960.10 ounces of water (Juice powder 12.5g and Water 16oz/order); total cups and straws would then be 373 pieces. In order to meet this demand for the month of August, we must be able to sell at least 16 orders per day. For the month of September, our expected demand is 380 units of Isolation (Fries and Drinks).
[6] Colin Drury, Management and Costing Accounting, (7th edition), Chapter 8, Cost-volume-profit analysis, p. 165-173
Jenkins, G.H. 1966. Introduction to cane sugar technology. Elsevier Publishing Co., New York. 478 pp.
When Maria was considering a large bulk order, how should she use the concept of contribution margin to decide which cookie's production to reduce in order to free up enough capacity to accept the bulk order? Under what circumstances should she not have accepted the bulk order? In the simulation Maria should use the contribution margin method when sales revenue less variable costs. It is the amount available to pay for fixed costs and provide any profit after variable cost has paid. Maria suggested that the total contribution Margin as well as the operating profits from lemon crème cookies is less than that for real mint cookies. Therefore reduce the current production volume for lemon crème cookies and produce more real mint cookies to accommodate this bulk order.However, Maria decision what not so conducive. When a company maximizes operating profits it is better to produce more of the product that has a greater contribution margin per-unit like the lemon cookie. In the beginning of the simulation Maria felt that price reduction alone was not sufficient. Aunt Connie's Cookies had to establish that they were one of the favorites in the convenience food category. It was best that Aunt Connie's Cookies increase their ad expenses by half for both peanut butter and lemon cookies. The company would then reach out to more retailers in the metros. To achieve this, they must pay more to their distributors $0.10 per pack instead of $0.06 per pack. Retaining the unit prices and increasing Aunt Connies Cookie's marketing expenditure resulted in good profits for the company. However, reducing unit prices could have boosted sales and resulted in even better profits. The bulk order shou...
The production of sap by the tree, syrup by man, and sugar by refining is long and meticulous. The characteristics of syrup are detailed, and the object of makers is to produce a rich product, while nurturing regularly to obtain a perfect consistency.
2. If the department that produces Item 345 was a profit center and if you were
Lululemon’s has to produce and sell 150,000 jackets in order to cover their total expenses, fixed and variable. At this level of sales, Lululemon’s will breakeven (profit = loss).
Purchase department has very importance in the organization.It is responsibility of this department to provide raw material to production department. Production department is dependent on this department. To
...r losses to its parent; and there are some special arrangements in the sugar industry.
If the company follow this recommendations, it will obtain a profit of $ 531,000 that represents $180,000 more than with seasonal production
During the last few years, Harry Davis Industries has been too constrained by the high cost of capital to make many capital investments. Recently, though, capital costs have been declining, and the company has decided to look seriously at a major expansion program that had been proposed by the marketing department. Assume that you are an assistant to Leigh Jones, the financial vice president. Your first task is to estimate Harry Davis’s cost of capital. Jones has provided you with the following data, which she believes may be relevant to your task.
Information required to accomplish needs analysis in response to given deficiency is statement of problem presented in specific quantitative and qualitative terms and with enough detail to justify progressing to next step. Problem statement must reflect true customer requirements