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  • Sensuous Scents Inc Product Mix Problem Constants

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    Prakhar Singh
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    Sensuous Scents Inc produces three products - body spray, cologne, and perfume - and must determine the optimal production mix to meet minimum sales demand of 60,000 units of body spray, 25,000 of cologne, and 12,000 of perfume, while maximizing profits and using a limited supply of the costly ingredient ambergis. The document provides cost and bill of materials information to inform the production mix optimization problem.

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    Session 6_Template_Sensuous Scents.xlsx

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    Sensuous Scents Inc produces three products - body spray, cologne, and perfume - and must determine the optimal production mix to meet minimum sales demand of 60,000 units of body spray, 25,000 of cologne, and 12,000 of perfume, while maximizing profits and using a limited supply of the costly ingredient ambergis. The document provides cost and bill of materials information to inform the production mix optimization problem.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    3 views2 pages

    Sensuous Scents Inc Product Mix Problem Constants

    Uploaded by

    Prakhar Singh
    Sensuous Scents Inc produces three products - body spray, cologne, and perfume - and must determine the optimal production mix to meet minimum sales demand of 60,000 units of body spray, 25,000 of cologne, and 12,000 of perfume, while maximizing profits and using a limited supply of the costly ingredient ambergis. The document provides cost and bill of materials information to inform the production mix optimization problem.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    SENSUOUS SCENTS INC PRODUCT MIX PROBLEM

    Constants

    Sales Price per Bottle


    Conversion Cost per Unit (Direct Labor plus Manufacturing Overhead)
    Minimum Sales Demand
    Income Tax Rate 32%
    Sales, General and Administrative Expenses per Dollar Revenue 0.30
    Available Ambergis (lbs) 20
    Cost per lb, Deionized Water $ 0.50
    Cost per lb, Ethanol $ 1.00
    Cost per lb, Other Additives $ 182.00
    Cost per lb, Ambergis $ 9,072.00

    Bill of Material
    Deionized Water (lb)
    Ethanol (lb)
    Other Additives (lb)
    Ambergis (lb)
    Body Spray Cologne Perfume

    $ 11.95 $ 21.00 $ 53.00


    $ 2.60 $ 6.50 $ 13.00
    60000 25000 12000

    Body Spray Cologne Perfume


    0.1 0.1 0.05
    0.1 0.02 0.01
    0.01 0.001 0.0001
    0.0001 0.00018 0.00055

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