Mama Best produces baby meal pouches: Beef-Veg Lasagne and Beef Spaghetti. Two processes are involved in...

 

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Mama Best produces baby meal pouches: Beef-Veg Lasagne and Beef Spaghetti. Two processes are involved in making these two products: Cooking and Packing. Mama Best employs five workers for Cooking. Each worker works 2,100 minutes per week. A Packing machine carries out the Packing process and has the capacity of 4,200 minutes per week. The following additional information is available: Beef-Veg Lasagne Beef Spaghetti Demand (units) Price per unit (S) Direct material per unit (S) 900 750 100 125 50 60 Each unit of Beef-Veg Lasagne requires 5 minutes Cooking time and 2 minutes Packing time. Each unit of Beef Spaghetti requires 7 minutes Cooking time and 4 minutes Packing time. The operating expense per week is $20,000. Required: 1. Identify Mama Best's binding constraint. (2 marks) 2. Using the Theory of Constraint, identify Mama Best's optimal product mix and calculate its weekly pre-tax profit based on this product mix. Show your workings. (4 marks) Mama Best produces baby meal pouches: Beef-Veg Lasagne and Beef Spaghetti. Two processes are involved in making these two products: Cooking and Packing. Mama Best employs five workers for Cooking. Each worker works 2,100 minutes per week. A Packing machine carries out the Packing process and has the capacity of 4,200 minutes per week. The following additional information is available: Beef-Veg Lasagne Beef Spaghetti Demand (units) Price per unit (S) Direct material per unit (S) 900 750 100 125 50 60 Each unit of Beef-Veg Lasagne requires 5 minutes Cooking time and 2 minutes Packing time. Each unit of Beef Spaghetti requires 7 minutes Cooking time and 4 minutes Packing time. The operating expense per week is $20,000. Required: 1. Identify Mama Best's binding constraint. (2 marks) 2. Using the Theory of Constraint, identify Mama Best's optimal product mix and calculate its weekly pre-tax profit based on this product mix. Show your workings. (4 marks)