A distributor of prewashed shredded lettuce is opening a new plant and considering whether to use a mechanized process or a manual process to prepare the product. The manual process will have a fixed cost of $43,400 per month and a variable cost of $1.80 per 5-pound bag. The mechanized process would have a fixed cost of $84,600 per month and a variable cost of $1.30. per bag. The company expects to sell each bag of lettuce for $2.50. A. What is the break-even point for each process B. What is the monthly profit or loss if the company chooses the manual process and sells 70,000 bags per month? 22. A company makes two products - product A and product B which are sold at a profit per unit of $60 and $100, respectively. The three resources used to make these products are summarized in the table below. The excel model setup is provided in the Exam 1 Excel Template. Complete the excel model spreadsheet by entering the required totals calculations and use Solver to maximize the total profit. Use the results to answer the following questions. Product A Product B Total Resources Available Resource X 12 0 372 Resource Y 8 16 592 Resource Z 8 8 280
A. What is the total profit? ____________________
B. Product A number of units? ____________________
C. Product B number of units? ____________________
D. Resource X total? ____________________
show work please (excel)