The investment cost of the fruit juice business was determined as 3,200,000 TL. The depreciation rate of the enterprise is determined as 10%. Fruit juice and concentrate are produced in equal amounts at the facility. The business operates 300 days a year and 12 hours a day. The maintenance and repair expenses of the enterprise are determined as 65,000 TL/year, the unexpected expenses are 36.000 TL/year, the fixed tax total is 82.000 TL/year, and the total personnel salaries are 300.000 TL/year. Fruit juice production cost was calculated as 2.6 TL/kg product and concentrate production cost as 6.8 TL/kg product. Fruit dry matter rate was 16%, fruit juice dry matter rate was 6%, and concentrated dry matter rate was 72%. Since the raw material price is 3.5 TL/kg of raw material, fruit juice and concentrate sales prices are 5.8 TL/kg and 32 TL/kg, what is the minimum raw material amount that must be processed per hour for the business to make a profit?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 35P
icon
Related questions
Question

The investment cost of the fruit juice business was determined as 3,200,000 TL. The depreciation rate of the enterprise is determined as 10%. Fruit juice and concentrate are produced in equal amounts at the facility. The business operates 300 days a year and 12 hours a day. The maintenance and repair expenses of the enterprise are determined as 65,000 TL/year, the unexpected expenses are 36.000 TL/year, the fixed tax total is 82.000 TL/year, and the total personnel salaries are 300.000 TL/year. Fruit juice production cost was calculated as 2.6 TL/kg product and concentrate production cost as 6.8 TL/kg product. Fruit dry matter rate was 16%, fruit juice dry matter rate was 6%, and concentrated dry matter rate was 72%. Since the raw material price is 3.5 TL/kg of raw material, fruit juice and concentrate sales prices are 5.8 TL/kg and 32 TL/kg, what is the minimum raw material amount that must be processed per hour for the business to make a profit?

Expert Solution
steps

Step by step

Solved in 2 steps with 3 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,