Peters Watson
03/23/2023 · High School

Question 9 While Simon is happy with the pie prices, volumes of pies sold and contributions of the individual four pie types, he notices that his production capacity is limited to 24,000 pies. For each additional pie to be produced he incurs a \( \$ 0.85 \) cost, known as the overtime processing cost. a. By means of an appropriate IF statement implemented in an excel sheet (that you will label Sheet_Q9) find the new total cost processing. The usual processing cost will be renamed as "normal processing cost" opposed to the overtime processing cost which occurs when the capacity limit of 24,000 pies is exceeded. b. Find the new ingredient costs, total cost, contributions and the profit.

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To calculate the new total cost processing in Excel, use the formula `=IF(A2 <= 24000, A2 * B2, (24000 * B2) + ((A2 - 24000) * (B2 + C2)))` in cell D2, where A2 is the total pies sold, B2 is the normal processing cost per pie, and C2 is the overtime cost per pie. For the new ingredient costs, total cost, contributions, and profit, set up additional columns and use formulas to calculate the total ingredient cost, total cost, total contribution, and profit based on the total pies sold, ingredient cost per pie, and selling price per pie.

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