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:

Profit Margin

A measure of profitability calculated as net income divided by revenue, or net profits divided by sales.

Interval Measure

Interval measure is a financial metric that assesses a company's ability to meet its current operational expenses by comparing its current assets to its current cash outflows.

Net Fixed Assets

These are a company's total fixed assets minus its accumulated depreciation, representing the actual value of the company’s fixed assets.

Average Daily Operating Costs

The average amount spent by a business on its day-to-day operational activities, divided by the number of days in the period.