A Cereal Manufacturer Makes Two Different Kinds of Cereal, Senior

question 25

Multiple Choice

A cereal manufacturer makes two different kinds of cereal, Senior Citizen's Feast and Kids Go. Each pound of Senior Citizen's Feast requires 0.6 lb of wheat and 0.2 lb of vitamin-enriched syrup, and each pound of Kids Go requires 0.4 lb of wheat, 0.2 lb of sugar, and 0.2 lb of vitamin-enriched syrup. Suppliers can deliver at most 2,800 lb of wheat, at most 800 lb of sugar, and at least 1,000 lb of the vitamin-enriched syrup. If the profit is $0.80 on each pound of Senior Citizen's Feast and $1.00 on each pound of Kids Go, find the number of pounds of each cereal that should be produced to obtain maximum profit. Find the maximum profit. Round your profit to the nearest cent, another answers - to the nearest whole number. ​

• A)Maximum profit of $4200.00 when 4000 lbs of Senior Citizen's Feast and 1000 lbs of Kids Go are produced.
• B)Maximum profit of $4800.00 when 1000 lbs of Senior Citizen's Feast and 4000 lbs of Kids Go are produced.
• C)Maximum profit of $5200.00 when 4000 lbs of Senior Citizen's Feast and 2000 lbs of Kids Go are produced.
• D)Maximum profit of $6000.00 when 2000 lbs of Senior Citizen's Feast and 4000 lbs of Kids Go are produced.
• E)Maximum profit of $5600.00 when 2000 lbs of Senior Citizen's Feast and 4000 lbs of Kids Go are produced.

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Definitions:

Abnormal Return

A term in finance that refers to the difference between an actual investment return and the expected return, based on the asset's risk and market movements.

Fourth Quarter Earnings

The financial performance of a company in the final quarter of its fiscal year, often used as an indicator of annual performance.

Beta

A financial metric that measures the volatility of a stock or portfolio in comparison to the market as a whole.

Annualized Return

The geometric average amount of money earned by an investment each year over a given time period, often used to compare the performance of investments with different time horizons.