Two Different Gasohol Mixtures Are Available

question 246

Multiple Choice

Two different gasohol mixtures are available. One contains 5% alcohol and the other 12% alcohol. How much of each should be mixed to obtain 1500 gal of gasohol containing 10% alcohol?

• A) 429 gal 5%; 1071 gal 12%
• B) 625 gal 5%; 875 gal 12%
• C) 75 gal 5%; 180 gal 12%
• D) 1071 gal 5%; 1071 gal 12%

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Definitions:

Lockboxes

A service offered by banks to companies for the collection of payment from customers, involving the use of special post office boxes.

Transactions Needs

The requirement for cash or liquid assets for the purpose of meeting immediate expenses or financial obligations.

Collection Float

The time period between when a payment is initiated by a payer and when the funds are available in the payee’s account.

Opportunity Costs

The benefit that is missed or foregone when choosing one alternative over another.