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Deru Chocolate Company manufactures two popular candy bars, the Venus bar and the Comet bar. Both Problem 14-59 candy bars go through a mixing operation where the various ingredients are combined, and the Coating late and Solve Graphically Linear Programming, Formu Department where the bars from the Mixing Department are coated with chocolate. The Venus bar is coated with both white and dark chocolate to produce a swirled effect. A material shortage of an ingredi- Appendid ent in the Comet bar limits production to 300 batches per day. Production and sales data are presented in (LO 14-8) the following table. Both candy bars are produced in batches of 200 bars. 3. Total contribution margin $55.000 Use of Capacity in Hours per Batch of Product Available Daily Department Capacity in Hours Venus Comet Mading 525 1.5 Coating 500 1.0 15 2.0 Management believes that Deru Chocolate can sell all of its daily production of both the Venus and Comet bars. Other data follow. Venus Selling price per batch Variable cost per batch Monthly fixed costs (allocated evenly between both products) $ 300 100 375,000 Comet $ 350 225 375,000 Required: 1. Formulate the objective function and all of the constraints in order to maximize contribution mar- gin. Be sure to define the variables. 2. How many batches of each type of candy bar (Venus and Comet) should be produced to maximize the total contribution margin? 3. Calculate the contribution margin at the optimal solution. ICMA, adapted

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