In: Accounting
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 |
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Bean Pupusas (makes 21) |
Pork Pupusas (makes 21) |
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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)
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 | ||||||