The Owner of Crackers,Inc

question 86

Multiple Choice

The owner of Crackers,Inc.produces two kinds of crackers: Deluxe (D) and Classic (C) .She has a limited amount of the three ingredients used to produce these crackers available for her next production run: 4,800 ounces of sugar; 9,600 ounces of flour,and 2,000 ounces of salt.A box of Deluxe crackers requires 2 ounces of sugar,6 ounces of flour,and 1 ounce of salt to produce; while a box of Classic crackers requires 3 ounces of sugar,8 ounces of flour,and 2 ounces of salt.Profits for a box of Deluxe crackers are $0.40; and for a box of Classic crackers,$0.50.What is the objective function?

• A)Z = $0.50 D + $0.40 C
• B)Z = $0.20 D + $0.30 C
• C)Z = $0.40 D + $0.50 C
• D)Z = $0.10 D + $0.20 C
• E)Z = $0.60 D + $0.80 C

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Definitions:

Cash Equivalents

Investments of a short-term nature that are both easily converted into precise cash amounts and carry a minimal risk of fluctuating in value.

IFRS

Stands for International Financial Reporting Standards, which are designed to make company accounts understandable and comparable across international boundaries.

Highly Liquid Investments

Investments that can easily and quickly be converted into cash with little loss of value.

Petty Cash Fund

A modest sum of money held in reserve for small or unplanned expenses.