Exhibit $4$ Resource Allocation

Happiland is dealing with some capacity challenges in their candy division. They currently produce three types of sour candies, Sugarbombs, Cherrysqueezes, and Sourblasters. They all use the same type of sour flavouring, $$Xsour$,$ and there have been challenges getting that flavouring. The company is unsure of which to produce, and so have been basing their production on demand numbers $($ie Sugarbombs first then the other two$).$

The Xsour costs $$5$ per KG and Happiland can only procure $245$ KG of Xsour. They must produce a minimum of $100$ bags of each type of candy. They are unsure how to proceed to determine the optimal production structure subject to these constraints.

Requirement: Provide the optimal production schedule for the candy division.

Sugarbombs Cherry Sour

Selling price per bag $$5\mathrm{.}50$ $$4\mathrm{.}50$ $$7\mathrm{.}00$

Demand $($in bags$)200010001000$

Variable costs$/$bag $4\mathrm{.}003\mathrm{.}504\mathrm{.}50$

Fixed costs$/$bag $\mathrm{.}75\mathrm{.}50\mathrm{.}65$

KG of Xsour per bag $0\mathrm{.}050\mathrm{.}250\mathrm{.}10$

Minimum bags produced $100100100$

Requirement: Provide the optimal production schedule for the candy division.