CSC Co

CSC Co is a health food company producing and selling three types of high-energy products:
cakes, shakes and cookies, to gyms and health food shops. Shakes are the newest of the three
products and were first launched three months ago. Each of the three products has two
special ingredients, sourced from a remote part the world. The first of these, Singa, is a super-
energising rare type of caffeine. The second, Betta, is derived from an unusual plant believed
to have miraculous health benefits.
CSC Co’s projected manufacture costs and selling prices for the three products are as follows:
Cakes Cookies Shakes
Per unit $ $ $
Selling price 5.40 4.90 6.00
Costs:
Ingredients: Singa ($1.20 per gram) 0.30 0.60 1.20
Ingredients: Betta ($1.50 per gram) 0.75 0.30 1.50
Other ingredients 0.25 0.45 0.90
Labour ($10 per hour) 1.00 1.20 0.80
Variable overheads 0.50 0.60 0.40
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Contribution 2.60 1.75 1.20

In the answer, there are slack values for Betta and Singa eventhough they are not binding constraints.. I didn’t get this

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