4.16 Q5 CMA Multiple products, multiple resource constraints, sensitivity Mrs. Meadows sells two popular brands of cookies, Chip Dip and Soft Chunk Chocolate Chip. Both cookies go through the mix- ing and baking departments, but Chip Dip is also dipped in chocolate in the coating department. Frank Roman, vice president for sales, believes that Mrs. Meadows can sell all of its daily production of Chip Dip and Soft Chunk. Both cookies are made in batches of 600 cookies. The batch times for producing each type of cookie and the minutes available per day are as follows. Mixing Baking Dipping Minutes required per batch Chip Dip 20 40 15 Soft Chunk 30 20 0 Minutes available per day 4,000 6,000 2,000 REQUIRED: Revenue per batch for Chip Dip is $150 and the variable costs per batch are $100. Fixed costs of $2,350 are allocated to Chip Dip. Revenue per batch for Soft Chunk Chocolate Chips is $175 and the variable costs per batch are $135. Allocated fixed costs are $1,500. Set up the target function (contribution margin function) and the constraints for this problem. Enter these constraints and the target function into Excel Solver or another linear programming package and print out a formula sheet and all of the reports. A. What is the optimal product mix? B. What is the total contribution margin for that product mix? C. Following the general decision rule, what would the managers of Mrs. Meadows be will- ing to pay to relax each constraint? D. Which constraints are binding? E. By how much could the contribution margin for Soft Chunk increase before the optimal product mix changes?