A Local Bagel Shop Produces Two Products: Bagels (B)and Croissants

question 48

Multiple Choice

A local bagel shop produces two products: bagels (B) and croissants (C) .Each bagel requires 6 ounces of flour,1 gram of yeast,and 2 tablespoons of sugar.A croissant requires 3 ounces of flour,1 gram of yeast,and 4 tablespoons of sugar.The company has 6,600 ounces of flour,1,400 grams of yeast,and 4,800 tablespoons of sugar available for today's production run.Bagel profits are 20 cents each,and croissant profits are 30 cents each.What is the objective function?

• A)Z = $0.30 B + $0.20 C
• B)Z = $0.60 B + $0.30 C
• C)Z = $0.20 B + $0.30 C
• D)Z = $0.20 B + $0.40 C
• E)Z = $0.10 B + $0.10 C

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Definitions:

Amortized

The process of gradually writing off the initial cost of an asset over a period, in accordance with its estimated useful life.

Equity Method

An accounting technique used to record investments in other companies where the investor has significant influence but not full control.

Amortization

The process of gradually writing off the initial cost of an intangible asset over its useful life.

Acquisition Differential

The gap between the acquisition cost of a company and the fair value of its clearly identifiable net assets.