TJ, Inc. makes three nut mixes for sale to grocery chains located in the Southeast. The three mixes, referred to as the Regular Mix, the Deluxe Mix, and the Holiday Mix, are made by mixing different percentages of five types of nuts. In preparation for the fall season, TJ, Inc. just purchased the following shipments of nuts at the prices shown: Type of Nut Shipment Amount (pounds) Cost per Shipment ($) Almond 6,100 7,500 Brazil 7,400 7,025 Filbert 7,400 6,750 Pecan 6,000 7,100 Walnut 7,400 7,875 The Regular Mix consists of 15% almonds, 25% Brazil nuts, 25% filberts, 10% pecans, and 25% walnuts. The Deluxe Mix consists of 20% of each type of nut, and the Holiday Mix consists of 25% almonds, 15% Brazil nuts, 15% filberts, 25% pecans, and 20% walnuts. An accountant at TJ, Inc. analyzed the cost of packaging materials, sales price per pound, and so forth, and determined that the profit contribution per pound is $1.70 for the Regular Mix, $2.05 for the Deluxe Mix, and $2.20 for the Holiday Mix. These figures do not include the cost of specific types of nuts in the different mixes because that cost can vary greatly in the commodity markets. Customer orders already received are summarized here: Type of Mix Orders (pounds) Regular 10,000 Deluxe 3,000 Holiday 5,000 Because demand is running high, it is expected that TJ, Inc. will receive many more orders than can be satisfied. TJ, Inc. is committed to using the available nuts to maximize profit over the fall season; nuts not used will be given to a local charity. Even if it is not profitable to do so, TJ, Inc.'s president indicated that the orders already received must be satisfied. Managerial Report Perform an analysis of the TJ, Inc.'s product-mix problem, and prepare a report for the president of TJ, Inc. that summarizes your findings. Cost Per Pound of the Nuts Included A. Determine the cost per pound of the nuts included in the Regular mix (in dollars). (Round your answer to two decimal places.) $ per pound B. Determine the cost per pound of the nuts included in the Deluxe mix (in dollars). (Round your answer to two decimal places.) $ per pound C. Determine the cost per pound of the nuts included in the Holiday mix (in dollars). (Round your answer to two decimal places.) $ per pound D. Determine the optimal product mix (in pounds). Regular lb Deluxe lb Holiday lb E. Determine the total profit contribution (in dollars). $ F. Recommend how the total profit contribution can be increased if additional quantities of nuts can be purchased. (Give your answers in dollars per pound. Round your numerical values to two decimal places.) Based on the previous results we find that additional almonds are worth $ per pound, additional Brazil nuts are worth $ per pound, additional filberts are worth $ per pound, additional pecans are worth $ per pound, and additional walnuts are worth $ per pound. Which types of nuts would you recommend TJ, Inc. attempt to acquire. (Select all that apply.) Almond Brazil Filbert Pecan Walnut
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
TJ, Inc. makes three nut mixes for sale to grocery chains located in the Southeast. The three mixes, referred to as the Regular Mix, the Deluxe Mix, and the Holiday Mix, are made by mixing different percentages of five types of nuts.
In preparation for the fall season, TJ, Inc. just purchased the following shipments of nuts at the prices shown:
|
Type of Nut |
Shipment Amount (pounds) |
Cost per Shipment ($) |
|
Almond |
6,100 |
7,500 |
|
Brazil |
7,400 |
7,025 |
|
Filbert |
7,400 |
6,750 |
|
Pecan |
6,000 |
7,100 |
|
Walnut |
7,400 |
7,875 |
The Regular Mix consists of 15% almonds, 25% Brazil nuts, 25% filberts, 10% pecans, and 25% walnuts. The Deluxe Mix consists of 20% of each type of nut, and the Holiday Mix consists of 25% almonds, 15% Brazil nuts, 15% filberts, 25% pecans, and 20% walnuts.
An accountant at TJ, Inc. analyzed the cost of packaging materials, sales price per pound, and so forth, and determined that the profit contribution per pound is $1.70 for the Regular Mix, $2.05 for the Deluxe Mix, and $2.20 for the Holiday Mix. These figures do not include the cost of specific types of nuts in the different mixes because that cost can vary greatly in the commodity markets.
Customer orders already received are summarized here:
|
Type of Mix |
Orders (pounds) |
|
Regular |
10,000 |
|
Deluxe |
3,000 |
|
Holiday |
5,000 |
Because demand is running high, it is expected that TJ, Inc. will receive many more orders than can be satisfied. TJ, Inc. is committed to using the available nuts to maximize profit over the fall season; nuts not used will be given to a local charity. Even if it is not profitable to do so, TJ, Inc.'s president indicated that the orders already received must be satisfied.
Managerial Report
Perform an analysis of the TJ, Inc.'s product-mix problem, and prepare a report for the president of TJ, Inc. that summarizes your findings.
- Cost Per Pound of the Nuts Included
A. Determine the cost per pound of the nuts included in the Regular mix (in dollars). (Round your answer to two decimal places.)
$ per pound
B. Determine the cost per pound of the nuts included in the Deluxe mix (in dollars). (Round your answer to two decimal places.)
$ per pound
C. Determine the cost per pound of the nuts included in the Holiday mix (in dollars). (Round your answer to two decimal places.)
$ per pound
D. Determine the optimal product mix (in pounds).
Regular lb
Deluxe lb
Holiday lb
E. Determine the total profit contribution (in dollars).
$
F. Recommend how the total profit contribution can be increased if additional quantities of nuts can be purchased. (Give your answers in dollars per pound. Round your numerical values to two decimal places.)
Based on the previous results we find that additional almonds are worth $ per pound, additional Brazil nuts are worth $ per pound, additional filberts are worth $ per pound, additional pecans are worth $ per pound, and additional walnuts are worth $ per pound.
Which types of nuts would you recommend TJ, Inc. attempt to acquire. (Select all that apply.)
Almond
Brazil
Filbert
Pecan
Walnut
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