I.

Results
1. Given

Table 1. Profit and cost computation of the products per pound

COST
Production Cost per Pound
+
Cost of Cocoa x Cocoa Needed

PROFIT
Selling Prince per Pound
Cost per Pound

Premium

1.64
0.50 + (0.19 x 6)

0.86
(2.50-1.64)

Chocodan
t

0.88
0.12+(P0.19x4)

0.63
(1.51-0.88)

Chocomer

0.68
11+(0.19x3)

0.54
(1.22-0.68)

The table demonstrates the computation of the cost and the profit of the
premium line and the new line of product.

Table 2. Allocation of the available cocoa

Available Cocoa

2,400 x 1.10 = 2,640

Premium

2,400 / 2 = 1,200

Chocodant
and
Chocomer

2,640 - 1,200 = 1,440

The available cocoa for production will increase by 10% and that the premium
line will be half of its present rate. The new line of products will make use of the
excess available cocoa less less the cocoa to be used for the premium.

Table 3. Limitation of the machines

Chocodant

Chocomer

Mixing Machine

500

300

Molding Machine

271

633

Shown above is the maximum capacity of the mixing and molding

machines. If one machine can only process one product at a time then the group
will make use of 271 molding machines for Chocodant and 300 mixing machines
for Chocomer. This is to ensure that they bypass any unfinished products since
both products need to undergo such processes.

B. Mathematical Model
Let:

X = number of pounds of Chocodant to produce and sell

1

X = number of pounds of Chocomer to produce and sell

2

Max. Z = 0.63X +0.54X

1

Subject to:
4X + 3X 1,440

Available cocoa (Table 2)

300X + 271X 81,300

Production Limit Constraint

X 271

Capacity of the molding machine for Chocodant

(Table 3)

X 300

Capacity of the mixing machine for Chocomer

(Table 3)

X >0

Non-negativity