The daily demand of type I, type II and type III is respectively 600 loaves, 750 loaves and 500 loaves. The per unit cost to the bakery of the ingredient A,B,C and D is respectively #0.10, #0.07, #0.05 and #0.4 . If the bakery sells the bread for #0.60 for type I, #0.04 for type II and #0.05 for type III, using multiplication only, Determine the following, (1).The ingredients required to fill the daily order(2). the cost for each type of Bread(3). Cost of ingredient required to fill the order.(4). Revenue realized from filling this order and the resultant profit.
To answer the given questions, we need to calculate the following:
1. The ingredients required to fill the daily order:
To find the total ingredients required for each type of bread, we multiply the daily demand of each type by the respective ingredient quantity:
For Type I:
Ingredient A: 600 loaves * 0.10 = 60 units
Ingredient B: 600 loaves * 0.07 = 42 units
Ingredient C: 600 loaves * 0.05 = 30 units
Ingredient D: 600 loaves * 0.40 = 240 units
For Type II:
Ingredient A: 750 loaves * 0.10 = 75 units
Ingredient B: 750 loaves * 0.07 = 52.5 units
Ingredient C: 750 loaves * 0.05 = 37.5 units
Ingredient D: 750 loaves * 0.40 = 300 units
For Type III:
Ingredient A: 500 loaves * 0.10 = 50 units
Ingredient B: 500 loaves * 0.07 = 35 units
Ingredient C: 500 loaves * 0.05 = 25 units
Ingredient D: 500 loaves * 0.40 = 200 units
2. The cost for each type of bread:
To find the cost for each type of bread, we multiply the ingredient cost per unit by the quantity of each ingredient required for that type:
For Type I:
Ingredient A cost: 60 units * #0.10 = #6
Ingredient B cost: 42 units * #0.07 = #2.94
Ingredient C cost: 30 units * #0.05 = #1.50
Ingredient D cost: 240 units * #0.40 = #96
For Type II:
Ingredient A cost: 75 units * #0.10 = #7.50
Ingredient B cost: 52.5 units * #0.07 = #3.67
Ingredient C cost: 37.5 units * #0.05 = #1.88
Ingredient D cost: 300 units * #0.40 = #120
For Type III:
Ingredient A cost: 50 units * #0.10 = #5
Ingredient B cost: 35 units * #0.07 = #2.45
Ingredient C cost: 25 units * #0.05 = #1.25
Ingredient D cost: 200 units * #0.40 = #80
3. Cost of ingredients required to fill the order:
To find the total cost of all ingredients required to fill the order, we sum up the individual ingredient costs for each type of bread:
Ingredient A: #6 + #7.50 + #5 = #18.50
Ingredient B: #2.94 + #3.67 + #2.45 = #9.06
Ingredient C: #1.50 + #1.88 + #1.25 = #4.63
Ingredient D: #96 + #120 + #80 = #296
4. Revenue realized from filling this order and the resultant profit:
To find the revenue for each type of bread, we multiply the selling price per unit by the daily demand for each type:
Type I revenue: 600 loaves * #0.60 = #360
Type II revenue: 750 loaves * #0.04 = #30
Type III revenue: 500 loaves * #0.05 = #25
Total revenue: #360 + #30 + #25 = #415
Profit: Revenue - Total ingredient cost
Profit = #415 - (#18.50 + #9.06 + #4.63 + #296) = #415 - #328.19 = #86.81
Therefore, the answers are:
(1) The ingredients required to fill the daily order:
- For Type I: 60 units of A, 42 units of B, 30 units of C, and 240 units of D
- For Type II: 75 units of A, 52.5 units of B, 37.5 units of C, and 300 units of D
- For Type III: 50 units of A, 35 units of B, 25 units of C, and 200 units of D
(2) The cost for each type of bread:
- Type I: #6 for A, #2.94 for B, #1.50 for C, and #96 for D
- Type II: #7.50 for A, #3.67 for B, #1.88 for C, and #120 for D
- Type III: #5 for A, #2.45 for B, #1.25 for C, and #80 for D
(3) Cost of ingredients required to fill the order: #18.50 for A, #9.06 for B, #4.63 for C, and #296 for D.
(4) Revenue realized from filling this order and the resultant profit: Revenue = #415 and Profit = #86.81.