The Production Planner for a Private Label Soft Drink Maker

question 74

Multiple Choice

The production planner for a private label soft drink maker is planning the production of two soft drinks: root beer (R) and sassafras soda (S) .Two resources are constrained: production time (T) ,of which she has at most 12 hours per day; and carbonated water (W) ,of which she can get at most 1500 gallons per day.A case of root beer requires 2 minutes of time and 5 gallons of water to produce,while a case of sassafras soda requires 3 minutes of time and 5 gallons of water.Profits for the root beer are $6.00 per case,and profits for the sassafras soda are $4.00 per case.Using the graphical method,what are optimal daily profits?

• A)$960
• B)$1,560
• C)$1,800
• D)$1,900
• E)$2,520

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Definitions:

Statement of Cash Flows

A ledger statement which outlines how modifications in balance sheet accounts and revenue streams influence cash and cash equivalents, with the analysis broken down by operating, investing, and financing operations.

Parentheses

Punctuation marks used in writing to enclose additional information or clarify something without interrupting the main text.

Cash Payments

Transactions that involve the outlay of cash by a business for various purposes, including expenses, acquisitions, or debt repayments.

Cost of Goods Sold

The direct costs attributed to the production of the goods sold by a company, including materials and labor.