Sara's Sensible Critters Makes Two Kinds of Catnip Toys: Balls

question 5

Short Answer

Sara's Sensible Critters makes two kinds of catnip toys: balls (x1) and mice (x2). The relationship between demand and price for balls and mice is:
x₁ = 1800 - 150p₁
x₂ = 1500 - 300p₂
The cost for a catnip ball is $2 and for the mouse, $3.
Sara has only 200 ounces of catnip on hand. A ball uses a tenth of an ounce and a toy mouse uses one-quarter of an ounce.
-Sara has found an unlimited source of catnip so that is no longer a constraint. However, customer demand dictates that she produce 2.5 times more catnip balls than mice. Write the new constraint.

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Definitions:

Management Accounting System

A framework used by organizations to provide financial data and information to managers for decision-making purposes.

Product Differentiation Strategy

A marketing strategy that businesses use to distinguish their products from similar offerings in the market, through unique features, branding, or quality.

Cost Reduction

The process of identifying and eliminating unnecessary costs to improve a company's profitability.

Product Innovation

The creation and introduction of new or significantly improved goods or services in the market.