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2. Slate lile Up A UNU ILJUL P J Question 2 (15 marks) To assist Marty with his marketing proposal you have offered to provide him with a break-even analysis for the 3 maca-sponge sized cakes. The costs are the same (refer to the cost estimation table in question 1). Fixed costs are $525,000 and the sales mix in the same percentage allocation that you calculated in question 1. 1. Calculate the unit contribution for each product. (2 marks) 2. What is the sales mix? (2 marks) 3. Calculate the weighted average unit contribution margin? (3 marks) 4. What is the break-even sales revenue in dollars? (4 marks) 5. How many of each type of maca-sponges must be sold to earn a target profit of $350,000? Assume a constant sales mix. (4 marks) Question 3 (10 marks) Marty wants to propose that STPL makes icing sugar figurines to go on top of the maca- sponges. The machine is available, however, it is not always reliable and will often make defective figurines. The figurines would be 1,2,3,4, and 5 inches tall. Based on one day's production there were a total of 130 of the 1 inch figurine, 256 of the 2 inch, 25 of the 3 inch, 396 of the 4 inch and 278 of the 5 inch. Required 1. What is the probability of selecting a linch figurine from the defective bin? (2 marks) 2. What is the probability of selecting a figurine that is 3 inches or more from the defective bin? (2 marks) 3. How can probability information be used to assist management in making better decisions? (6 marks) stion 4 (10 marks) Question 1 (15 marks) Marty, the marketing manager, would like you to assist in providing information for a marketing strategy he is proposing at the annual general meeting next month. He is focusing only on the maca-sponge and wants to know the optimal product mix. Below is an estimate of the costs of the three sizes of the maca-sponge. Maca-Sponge Sizes 1.5kg 800 gram 300gram Selling Price $30.00 $25.00 $19.00 Costs: Raw materials $10.00 $8.00 $3.00 Direct labour $7.00 $4.00 $2.00 Overhead $5.00 $4.00 $2.80 Selling and Admin $3.00 $2.50 $2.20 Each of the three products goes through the same manufacturing process which consists of mixing, spreading, cooking and then packaging ready to be sold. The time for each process, in minutes, is in the table below. Mixing Spreading Cooking Packaging HOURS REQUIRED 1.5 kg 800 gram 300 gram HOURS AVAILABLE 12,000 10,000 8,000 100,000 Required: 1. Formulate a linear program to determine the expected mix of maca-sponge, ensuri that the maximum profit is obtained. (8 marks) 2. State the optimal mix and resulting profit. Discuss your results (7 marks) Question 2 (15 marks) To assist Marty with his marketing proposal you have offered to provide him with a break- analysis for the 3 maca-sponge sized cakes. The costs are the same (refer to the cost estimation table in question 1). Fixed costs are $525,000 and the sales mix in the same percentage allocation that you calculated in question 1. 1. Calculate the unit contribution for each product. (2 marks) 2. What is the sales mix? (2 marks) 3. Calculate the weighted average unit contribution margin? (3 marks) 4. What is the break-even sales revenue in dollars? (4 marks) 5. How many of each type of maca-sponges must be sold to earn a target profit of $350,000? Assume a constant sales mix. (4 marks) Question 3 (10 marks) Marty wants to propose that STPL makes icing sugar figurines to go on top of the maca sponges. The machine is available, however, it is not always reliable and will often ma defective figurines. The figurines would be 1,2,3,4, and 5 inches tall. Based on one day production there were a total of 130 of the 1 inch figurine, 256 of the 2 inch, 25 of the 396 of the 4 inch and 278 of the 5 inch