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Yogurt Palace Produces Two Flavors of Low-Fat Frozen Yogurt: Blueberry

Question 144

Multiple Choice

Yogurt Palace produces two flavors of low-fat frozen yogurt: Blueberry and Raspberry.Information regarding the products is summarized for the month of January in the following table:  Blueberny  Raspbery  Number of units 6,0002,000 Sales revenue $90,000$20,000 Fixed costs 20,0009,000 Variable costs 36,0005,000 Profit $34,000$6,000 Amount of processing time per unit 1.4 hours 1.1 hours  Contribution margin per unit $9.00$7.50 Profit per unit $5.67$3.00\begin{array}{lrr}&\text { Blueberny }&\text { Raspbery }\\ \text { Number of units } & 6,000 & 2,000 \\\hline \text { Sales revenue } & \$ 90,000 & \$ 20,000 \\\text { Fixed costs } & 20,000 & 9,000 \\\text { Variable costs } & 36,000 & 5,000\\\text { Profit } & \$ 34,000 & \$ 6,000 \\\text { Amount of processing time per unit } & 1.4 \text { hours } & 1.1 \text { hours } \\\text { Contribution margin per unit } & \$ 9.00 & \$ 7.50 \\\text { Profit per unit } & \$ 5.67 & \$ 3.00\end{array} Yogurt Palace determined it will have only 5,950 hours of processing time during March for which it can produce yogurt.Yogurt Palace determines that it should produce a minimum of 1,500 units of each flavor to stay competitive, and that it should produce more raspberry flavored yogurt than blueberry yogurt.How many raspberry yogurt should the company produce in February considering the processing constraint?


A) 3,500 units
B) 3,850 units
C) 5,409 units
D) 4,250 units

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