Delisshious Toasty Chocolates Company Primarily Produces Two Types of Chocolate

question 17

Essay

Delisshious Toasty Chocolates Company primarily produces two types of chocolate bars, Almond Tasty and Cashew Crunchy. The personnel costs incurred per day to produce the two types of chocolate bars are $100 and $120, respectively. The production cost per chocolate bar is $2 for Almond Tasty and $2.5 for Cashew Crunchy. The daily production capacity of Almond Tasty and Cashew Crunchy chocolate bars are 1100 and 1250, respectively. Only one type of bar can be produced on a given day since only one machine is available.
​
Let C₁ = the number of Almond Tasty chocolate bars produced
C₂ = the number of Cashew Crunchy chocolate bars are produced
Y₁ = 1 if the machine produces Almond Tasty; 0, otherwise
Y₂ = 1 if the machine produces Cashew Crunchy; 0, otherwise
a. Write a constraint that sets the next day's maximum production of Almond Tasty to 1100.
b. Write a constraint that sets the next day's maximum production of Cashew Crunchy to 1250.
c. Write a constraint that requires that production be set up for exactly one of the two chocolates bars.
d. Write the cost function to be minimized.

---

Definitions:

Closing Process

The closing process in accounting involves summarizing all revenues and expenses for the period and transferring the balances to the owner's equity account to prepare for the next accounting period.

Temporary Accounts

These are accounts that are closed at the end of each accounting period, including revenues, expenses, dividends, and income summary accounts, to prepare the company for a new accounting period.

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to reinvest in its business or to pay debt.

Accounting Period

A specific duration of time for which financial statements are prepared, often annually, quarterly, or monthly, to measure financial performance.