Arizona Microbrewery, Inc.: An Instructional Case on Management Decision
David is determined to make $50,000 after tax. After listening to your advice, he
makes a radical choice: discontinuing the production of Bock and Stout beers.
Assume that David has conducted some market research that shows he will
continue selling Ale and Pilsner beer at a ratio of 2 to 1. Given David’s current
productive capacity, can he now achieve his goal? How many cases of Ale and
Pilsner would he have to sell to reach his goal? Given the 2:1 sales mix and the
available number of machine hours, what is the maximum after-tax profit David
could attain using this strategy?
Memorandums are individual assignments. Please work on it individually and turn
it in using Turnitin (a link will be made available on Blackboard).