Use Linear Programming to Solve Problems
-A Candy Company Has $\$ 6$

question 84

Multiple Choice

Use Linear Programming to Solve Problems
-A candy company has 125 pounds of cashews and 150 pounds of peanuts which they combine into two different mixes. The deluxe mix has half cashews and half peanuts and sells for $\$ 6$ per pound. The economy mix has one third cashews and two thirds peanuts and sells for $\$ 4.60$ per pound. How many pounds of each mix should be prepared for maximum revenue?

• A) 200 pounds of deluxe and 75 pounds of economy
• B) 300 pounds of deluxe and 50 pounds of economy
• C) 100 pounds of deluxe and 25 pounds of economy
• D) 125 pounds of deluxe and 0 pounds of economy

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Definitions:

Divisions

Segments or sections of a larger organization, often treated as separate units for accounting or managerial purposes.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, used to cover fixed costs and generate profit.

Business Segments

Different parts of a company that operate in distinct markets or industries, often reported separately in financial statements.

Common Fixed Expenses

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, shared across different parts of a business.