1. Engineering
  2. Civil Engineering
  3. 17 a food processor raw material he is considering the...

Question: 17 a food processor raw material he is considering the...

Question details

1-7 A food processor raw material, he is considering the development of a new product. Depending on the quality of can expect different yields process-wise, and the quality of the final products will considerably. The product development department has identified three alternatives, which it has produced on a pilot scale. The marketing department has used those samples for surveys to estimate potential sales and pricing strategies. The three alternatives, which would use existing equipment, but different process conditions and specifications, are summarized as follows. Indicate which altermative seems to be the best according to the estimated data, if the objective is to maximize total profit per year. Altemative Pounds of raw material A per unit of product Pounds of raw material B per unit of product Pounds of raw material C per unit of product Other processing costs (S/unit product) Expected wholesale price (S/unit product) Projected volume of sales (units of product) Cost of raw material A $3.45/lb Cost of raw material B S1.07/lb Cost of raw material C $1.88/1b 0.05 0.19 0.07 0.18 0.12 0.14 so2425 0.075 0.26 0.17 S0.23 S0.24 1.05 1,000,000 1,250,000 800,000 $0.16 0.95
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution