Almond Roca isconsidering three nut mixes for inclusion in a new productline, MixeyNuts!:Regular Mix, Deluxe Mix, and Holiday Mix. Each mix is made from 5nuts, in different combinations.

Type ofNut	ShipmentAmount (pounds)	Cost perShipment
Almond	6000	$7500
Brazil	7500	$7125
Filbert	7500	$6750
Pecan	6000	$7200
Walnut	7500	$7875

The Regular Mixconsists of 15% almonds, 25% Brazil nuts, 25% filberts, 10% pecans,and 25% walnuts. The Deluxe Mix consists of 20% of each type ofnut.

The Holiday Mixconsists of 25% almonds, 15% Brazil nuts, 15% filberts, 25% pecans,and 20% walnuts.

An accountant atAlmond Roca, Inc., analyzed the cost of packaging materials, salesprice per pound, etc, and determined that the profit contribution perpound is $1.65 for the Regular Mix, $2.00 for the Deluxe Mix, and$2.25 for the Holiday Mix. The price of the nuts can vary frommonth to month.

The estimate thecustomer orders for the different types to be asfollows:

Type ofMix	Orders(pounds)
Regular	10,000
Deluxe	3,000
Holiday	5,000

The president ofAlmond Roca wants to commit to these a minimum, even if notimmediately profitable, in order to introduce these new mixes tothe market.

Report:

Summarize thisproblem, and discuss the following topics:

1.The cost per pound of the nuts included in the Regular, Deluxe, andHoliday mixes.

2.The optimal product mix and the total profitcontribution.

3.Recommendation regarding how the total profit contribution can beincreased if additional quantities of nuts could be found.

4.A recommendation as to whether Almond Roca should purchase anadditional 1000 pounds of almonds for $1000 from a supplier whooverbought.

5.Recommendations on how profit contribution could be increased (ifat all) if Almond Roca does not satisfy the minimums listedabove.