A Pork Producer Is Considering Two Types of Feed That

question 11

Multiple Choice

A pork producer is considering two types of feed that contain the necessary ingredients for the nutritional requirements for fattening hogs. Brand X contains 2 units of ingredient A per pound and 15 units of ingredient B per pound, Brand Y contains 15 units of ingredient A per pound and 2 units of ingredient B per pound. The nutritional requirements for the hogs are at least 120 units of ingredient A and at least ​237 units of ingredient B. If brand X costs 65 cents per pound and brand Y costs 80 cents per pound, how many pounds of each brand should be bought to satisfy the nutritional requirements at minimum cost? ​

• A)10 lbs of brand X and 5 lbs of brand Y meets the needs at minimum cost.
• B)15 lbs of brand X and 5 lbs of brand Y meets the needs at minimum cost.
• C)10 lbs of brand X and 6 lbs of brand Y meets the needs at minimum cost.
• D)6 lbs of brand X and 15 lbs of brand Y meets the needs at minimum cost.
• E)15 lbs of brand X and 6 lbs of brand Y meets the needs at minimum cost.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders.

Subscriptions Receivable-Common Stock

The amount owed to a company from subscribers who have committed to buy its common stock but have not yet paid.

Common Stock Subscribed

Temporary stockholders’ equity account that records at par value stock that has been subscribed to but not fully paid for.

Organization Expense

These are initial costs incurred in the process of starting a business, such as legal fees, state fees, and promotional expenses, which may be expensed or capitalized over time.