Yes, I agree. This is because based on the results of the financial summary of MNC’s average weekly operations over the past quarter; the products Cluster and Crunch were unprofitable. Consequently, they will most probably remain unprofitable in the future production as well.
In excel
If MNC is to reduce the production of any product, the product they should choose is Cluster. This is because if the production would be lower, MNC would be able to produce Whole product, which is more profitable. Consequently, since Whole product is more profitable, cluster should be the one to be decreased as it is not profitable. Thus, if Cluster is produced MNC gets less total profit.
If MNC wanted to increase the production of any product, they should increase the production of Whole product. The company makes the most money on the sell of this product, thus, it is the most profitable.
The packaging machine is preventing MNC from making more money. In order to increase profit, it should 75 hours a week and no more. MNC can pay $250 to achieve some profit.
MNC should not acquire more chocolate. It needs none. There are enough chocolate for production.
If MNC wanted to decrease the price of Whole profit, the optimal solution would not change. This is because Whole product will still be the most profitable. The profit per one product sold (profit per unit) will become $0,46, which will still make it the most profitable product of the company.
