I need help with parts 3 and 4. See attachements below for template.Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 100,000 pounds of grade 9 oranges and 120,000 pounds of grade 6 oranges on hand. The average quality of oranges sold in bags must be at least 7, and the average quality of the oranges used to produce orange juice must be at least 8. Each pound of oranges that is used for juice yields a revenue of $1.50 and incurs a variable cost (consisting of labor costs, variable overhead costs, inventory costs, and so on) of $1.05. Each pound of oranges sold in bags yields a revenue of $1.50 and incurs a variable cost of $0.70.Determine how Sunblessed can maximize its profit.Use SolverTable to determine how a change in the cost per bag of oranges changes the optimal solution.Use SolverTable to determine how a change in the amount of grade 9 oranges available affects the optimal solution.Use SolverTable to determine how a change in the required average quality required for juice changes the optimal solution. AB1 Selling oranges and orange juice2 Part 13Bags45RevenueVariable cost678 Grade91011 sold1213141516171819 Actual2021 required222324 cost, revenue, profit2526 Variable cost27 Revenue2829 Profit30 Total profit3132333435363738394041424344454647Ready11.05Bags6 193333.333996666.6667290000BagsBagsBags1.11.151.21.251.31.351.41.451.5P4-461.2CCartons2203000020300003480005800002320003040002900002.251.35Used220000 <=Cartons26666.6666753333.33333 150000 <=80000CartonsCartonsYCartonsP4-486400006400001080001800007200080000 ProfitDP4-50EFAvailability220000150000GP4-50 Sensitivity Analysis 3H+ for MacP35X ✓fxABCDE1 Oneway analysis for Solver model in P4-50 worksheet23 Bag Cost (cell $B$5) values along side, output cell(s) along top13700003700001.053700003515002900003330001.11.152900003185001.22900003040001.252900002895001.32900002750001.352900002605001.42900002460001.452900002315001.5290000217000P4-50456789101112131415161718 Part 21920a 212223242526272829303132333435WW5636Ready$C$1100800008000080000800008000080000800008000080000P4-46$B$11P4-48$B$30FGP4-50 Sensitivity Analysis 3H9000080000700006000050000400003000020000100000+11 1.05JKData for chart00800008000080000800008000080000800008000080000Sensitivity of $C$11 to Bag Cost1.11.151.2 1.25 1.3Bag Cost ($B$5)Simulator$C$11XLMNWhen you select an output from thedropdown list in cell $K$4, the chartwill adapt to that output.1.35 1.4 1.451.597%x

Profit maximization is the main aim of any entity. The profit can be maximized by performing two…

Answered: I need help with parts 3 and 4. See…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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I need help with parts 3 and 4. See attachements below for template.

Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 100,000 pounds of grade 9 oranges and 120,000 pounds of grade 6 oranges on hand. The average quality of oranges sold in bags must be at least 7, and the average quality of the oranges used to produce orange juice must be at least 8. Each pound of oranges that is used for juice yields a revenue of $1.50 and incurs a variable cost (consisting of labor costs, variable overhead costs, inventory costs, and so on) of $1.05. Each pound of oranges sold in bags yields a revenue of $1.50 and incurs a variable cost of $0.70.

Determine how Sunblessed can maximize its profit.
Use SolverTable to determine how a change in the cost per bag of oranges changes the optimal solution.
Use SolverTable to determine how a change in the amount of grade 9 oranges available affects the optimal solution.
Use SolverTable to determine how a change in the required average quality required for juice changes the optimal solution.

A
B
1 Selling oranges and orange juice
2 Part 1
3
Bags
4
5
Revenue
Variable cost
6
7
8 Grade
9
10
11 sold
12
13
14
15
16
17
18
19 Actual
20
21 required
22
23
24 cost, revenue, profit
25
26 Variable cost
27 Revenue
28
29 Profit
30 Total profit
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
Ready
1
1.05
Bags
6 193333.333
9
96666.6667
290000
Bags
Bags
Bags
1.1
1.15
1.2
1.25
1.3
1.35
1.4
1.45
1.5
P4-46
1.2
C
Cartons
2
2030000
2030000
348000
580000
232000
304000
290000
2.25
1.35
Used
220000 <=
Cartons
26666.66667
53333.33333 150000 <=
80000
Cartons
Cartons
Y
Cartons
P4-48
640000
640000
108000
180000
72000
80000 Profit
D
P4-50
E
F
Availability
220000
150000
G
P4-50 Sensitivity Analysis 3
H
+

for Mac
P35
X ✓
fx
A
B
C
D
E
1 Oneway analysis for Solver model in P4-50 worksheet
2
3 Bag Cost (cell $B$5) values along side, output cell(s) along top
1
370000
370000
1.05
370000
351500
290000
333000
1.1
1.15
290000
318500
1.2
290000
304000
1.25
290000
289500
1.3
290000
275000
1.35
290000
260500
1.4
290000
246000
1.45
290000
231500
1.5
290000
217000
P4-50
456789
10
11
12
13
14
15
16
17
18 Part 2
19
20
a 21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
WW
56
36
Ready
$C$11
0
0
80000
80000
80000
80000
80000
80000
80000
80000
80000
P4-46
$B$11
P4-48
$B$30
F
G
P4-50 Sensitivity Analysis 3
H
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
+
1
1 1.05
J
K
Data for chart
0
0
80000
80000
80000
80000
80000
80000
80000
80000
80000
Sensitivity of $C$11 to Bag Cost
1.1
1.15
1.2 1.25 1.3
Bag Cost ($B$5)
Simulator
$C$11
X
L
M
N
When you select an output from the
dropdown list in cell $K$4, the chart
will adapt to that output.
1.35 1.4 1.45
1.5
97%
x

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