## Unit Revenue

**QUESTION 1 **

What is the unit revenue for the WHOLE product line after your adjustments? Enter your result rounded to 1/10 of a penny (3 decimal places). Do NOT include commas or the “$” symbol.

- What is the unit cost of DIRECT MATERIALS for the WHOLE product line after your adjustments? Enter your result rounded to 1/10 of a penny (3 decimal places). Do NOT include commas or the “$” symbol.
- What is the unit cost of DIRECT LABOR for the WHOLE product line after your adjustments? Enter your result rounded to 1/10 of a penny (3 decimal places). Do NOT include commas or the “$” symbol.
- What is the unit cost of VARIABLE MANUFACTUING OVERHEAD for the WHOLE product line? Enter your result rounded to 1/10 of a penny (3 decimal places). Do NOT include commas or the “$” symbol.
- What is the unit cost of VARIABLE SELLING & ADMINISTRATIVE for the WHOLE product line? Enter your result rounded to 1/10 of a penny (3 decimal places). Do NOT include commas or the “$” symbol.
- What is the unit CONTRIBUTION MARGIN for the WHOLE product line after your adjustments? Enter your result rounded to 1/10 of a penny (3 decimal places). Do NOT include commas or the “$” symbol.
- What is the unit CONTRIBUTION MARGIN for the CLUSTER product line after your adjustments? Enter your result rounded to 1/10 of a penny (3 decimal places). Do NOT include commas or the “$” symbol.
- What is the unit CONTRIBUTION MARGIN for the ROASTED product line after your adjustments? Enter your result rounded to 1/10 of a penny (3 decimal places). Do NOT include commas or the “$” symbol.
- Including any non-redundant non-negativity constraints, how many constraints does your model have?
- In the Answer Report, how many constraints are listed as binding? [Ignore the non-negativity constraints.]
- Is the model degenerate?

[Select TRUE for Yes and FALSE for No.]

True

False - Is the solution unique?

[Select TRUE for Yes and FALSE for No.]

True

False**QUESTION 13**

Based on the results of your SOLVER run, what is the Return on Sales (Ratio of Total Net Profit to Total Revenues)?Enter your result as a pure number (not %) rounded to 3 decimal places. For example: 0.2574 would be entered as 0.257, not as “25.7%”.**QUESTION 14**

In the optimal production mix, what is the quantity of CRUNCH produced?Enter your answer rounded to the nearest whole unit (integer) and do not include commas or other symbols.**QUESTION 15**

In the optimal production mix, what is the quantity of ROAST produced?Enter your answer rounded to the nearest whole unit (integer) and do not include commas or other symbols.**QUESTION 16**

In the optimal production mix, what is the quantity of CLUSTER produced?Enter your answer rounded to the nearest whole unit (integer) and do not include commas or other symbols.

**QUESTION 17 **

.

After optimization, assume that the company had an opportunity to further reduce the production of any product, despite production minimum quantity constraints. Which product would be the best candidate?

.

A. Cluster

B. Crunch

C. Roasted

D. Whole**QUESTION 18 **

What is the total revenues in the optimized model? Round your answers to the nearest dollar. Do not include the “$” symbol or commas. For example, a $1,200.05 is entered as 1200.**QUESTION 19**

.

What is the total NET Profits in the optimized model? Round your answers to the nearest dollar. Do not include the “$” symbol or commas. For example, a $1,200.05 is entered as 1200.**QUESTION 20**

The Human Resource manager asked the director of production how many additional workers (labor hours) you need to create more revenue. What is your response? **QUESTION 21**

A business unit manager from another unit is helping his procurement department find additional resources. He approaches you, as the product manager, to request chocolate and he will pay at the internal transfer price. If you have a deadline to meet, how many pounds should be transferred without impacting you? (Round your result to the nearest pound without commas.)**QUESTION 22**

The product manager of the Crunch product line is concerned about the production numbers. Based on the Sensitivity Report, determine the minimum increase or decrease in the unit sales price of the product that should alleviate his concerns. Round your answers to the nearest penny. Use a negative sign for decrease. Do not include the “$” symbol. For example, a $0.254 decrease is entered as -0.25.**QUESTION 23 **

The manufacturing manager wants to lease another roasting machine. Based on the Sensitivity Report, determine the net gain or loss. The machine costs $1,000, the full cost is absorbed in this planning cycle. Round your answers to the nearest dollar. Use negative sign for a net loss. Do not include the “$” symbol or commas. For example, a $1,200.05 decrease is entered as -1200.

QUESTION 24

The receiving realized that the nut supplier shipped them 1,000 more pounds of nuts than they were allocated. What is the impact to the contribution margin if the entire shipment was consumed for manufacturing? (Enter your result to the nearest penny without $ symbol.)

QUESTION 25

The purchasing manager wants to buy more nuts. Based on the Sensitivity Report and other reports, determine how many pounds of nuts should be purchased.

QUESTION 26

.

After optimizing the model, what is the improvement (change) in the Return on Sales? Express your result as a difference between the final and original ROS in decimal form rounded to 2 decimal places.

QUESTION 27

If they find a method to satisfy the early buyer of the Crunch product without shipping any Crunch, what would be the net gain or loss to the company? Enter your answer rounded to the nearest penny and use “-” sign to indicate a net loss. (Hint: Sensitivity report!)

QUESTION 28

Based on the LIMITS report, what would be the resulting contribution margin if the Whole products’ shipments were reduced to the booked orders? Enter your result to the nearest dollar and do not include “$” symbol.

QUESTION 29

Sales received an inquiry regarding a large order. A single customer is willing to purchase most of the capacity of the Whole product. However, they want a discount.

Determine how much of a unit discount could be given before the model is no longer optimal. Enter your result to 3 decimal places and do not include “$” symbol.

QUESTION 30

Determine the net profit (loss) of the Crunch product line at the optimal solution. Enter your result to the nearest dollar and do not include “$” symbol use a negative sign for loss.

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