Question

1. First, determine if there is sufficient capacity to meet the special order
2. Second, determine which currently-sold product is less profitable (UCM per scarce resource). If you have to give up some of your regular customers, give up those who are least profitable.
3. Then can you start the four-step method.
4. Note: On the old test twos on iLearn, you will see examples of similar problems with answers.

The student group, ALPFA, is taking advance orders to sell bean pupusas and pork pupusas on November 12 for $42 for a batch of 21 pupusas. The students are doing all the cooking, and they will be using a friend’s kitchen. Their only constraint is that they can’t use more than 150 cups of masa flour. As of October 20, ALPFA has orders for 10 batches of bean pupusas and 35 batches of pork pupusas.

Recipes
Bean Pupusas (makes 21)		Pork Pupusas (makes 21)
Ingredient	Cost	Ingredient	Cost
3 cups beans	$0.50 per cup	3 pounds pork	$4 per pound
3 pounds cheese	$2 per pound	3 pounds cheese	$2 per pound
4 cups masa flour	$1 per cup	3 cups masa flour	$1 per cup

On October 31, Theresa tried to order 8 batches of bean pupusas, and wanted to pay $40 per batch. Should ALPFA take her order? Show your quantitative analysis (4-step method and CFISes)

Answer 1

1)	masa flour
bean pupusas	4
pork	3
equation	4x+3x	<	150
	bean	pork	total
order ( batches)	10	35
special order	8	0
total	18	35
masa flour needed / batch	4 cup	3 cup
total requirement	18*4	35*3
	72	105	177
extra material required(177-150)			27
material required for regular order	35*3+10*4
=	145
material required for special order	8*4
=	32
we have jst 5 units available for special order
2)	bean	cost	total	pork	cost	total
sale price	42	-	42	42	-	42
less: cost
beans	3	0.5	1.5	3	4	12
cheese	3	2	6	3	2	6
masa flour	4	1	4	3	1	3
profit			30.5			21
pork is least profitable