Short-run decision making consists of choosing among alternatives with an immediate or limited end in view. Short-term decisions sometimes are referred to as tactical, or relevant, decisions because they involve choosing between alternatives with an immediate or limited time frame in mind. Suppose that a product can be sold at split-off for $5,000 or processed further at a cost of $1,000 and then sold for $6,400. Should the product be processed further.

Vikrambhai

Assuming that there are no market constraints atall, which product line would maximize profits forthe firm? Configure the solver parameters to address thequestion taking into consideration machine and laborcapacity constraints ONLY. Insert a new comment andprepare a brief analysis of the results. (Hint: whichresource is the constraining resource?)                           Southern Frozen Foods   Proforma Monthly Segment Analysis     Sauces Soups Casseroles Unused Capacity Total   Sales volume (cases)               200               300               500            1,000   Revenue $6,000 $30.00 $12,600 $42.00 $25,000 $50.00   $43,600   Variable costs          3,200          16.00          6,600          22.00        14,000          28.00          23,800   Contribution margin $2,800 $14.00 $6,000 $20.00 $11,000 $22.00   $19,800   Fixed costs:                      Machine-time-related             420            1,050            2,625            2,905          7,000…

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