Zesty is sold for $2.25, how many containers of Regular and Zesty should New England Cheese produce?

Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
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The New England Cheese Company
produces two cheese spreads by
blending mild cheddar cheese with extra
sharp cheddar cheese. The cheese.
spreads are packaged in 12-ounce
containers, which are the distributors
throughout the Northeast. The Regular
blend contains 80% mild cheddar and
20% extra sharp, and the Zesty blend
contains 60% mild cheddar and 40%
extra sharp. This year, a local dairy coo
provide up to 8,055 pounds of mild
cheddar cheese for $1.20 per pound and
up to 2,970 pounds of extra sharp
cheddar cheese for $1.40 per pound. The
cost to blend and package the cheese
spreads, excl the cheese, is $0.20 per
container. If each container of Regular is
sold for $1.90 and each container of
Zesty is sold for $2.25, how many
containers of Regular and Zesty should
New England Cheese produce?
Transcribed Image Text:The New England Cheese Company produces two cheese spreads by blending mild cheddar cheese with extra sharp cheddar cheese. The cheese. spreads are packaged in 12-ounce containers, which are the distributors throughout the Northeast. The Regular blend contains 80% mild cheddar and 20% extra sharp, and the Zesty blend contains 60% mild cheddar and 40% extra sharp. This year, a local dairy coo provide up to 8,055 pounds of mild cheddar cheese for $1.20 per pound and up to 2,970 pounds of extra sharp cheddar cheese for $1.40 per pound. The cost to blend and package the cheese spreads, excl the cheese, is $0.20 per container. If each container of Regular is sold for $1.90 and each container of Zesty is sold for $2.25, how many containers of Regular and Zesty should New England Cheese produce?
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