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Maria should have continued to make more lemon creme cookies. According to their sales forecast they needed to produce 1.6 million packs of lemon cookies. The breakeven point for manufacturing lemon creme cookies in the newly acquired unit is 563,000 packs. Maria should have chose to manufacture 600,000 packs resulting in operating profits from the new unit this will make the exact monthly production target for the lemon creme cookies and increase overall profit...
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Maria should have chose to manufacture 600,000 packs resulting in operating profits from the new unit this will make the exact monthly production target for the lemon creme cookies and increase overall profit. Increasing the operating profits packs to 650,000 would result forcing the existing unit to reduce volumes for lemon cookies as they were exceeding the monthly production target...
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