Formulate a linear program to minimize the cost of raw sunflower seeds. Use the average price of seeds forecasted from the previous step in order to determine supplier prices.

Perform a cost$-$volume$-$price analysis $($review the handout entitled Cost$-$Volume$-$Profit Analysis for details$)$ using the average cost per short ton average selling price per short ton.

You can generate an effective cost per short ton by dividing the total cost of supply $($from the linear program$)$ by the total volume $($that you assumed in the linear program$).$

You can generate an effective selling price per short ton from the expected percentage yields and the forecasted average price of sunflower oil and mash.

Because of the way that the contract is written, you can assume that the purchase of raw sunflower seeds is a variable cost $($you only purchase what you require$).$