The Production Planner for Fine Coffees, Inc

question 96

Multiple Choice

The production planner for Fine Coffees, Inc., produces two coffee blends: American (A) and British (B) . Two of his resources are constrained: Columbia beans, of which he can get at most 300 pounds (4,800 ounces) per week; and Dominican beans, of which he can get at most 200 pounds (3,200 ounces) per week. Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of bean. Profits for the American blend are $2.00 per pound, and profits for the British blend are $1.00 per pound. What is the Columbia bean constraint?

• A)1 A + 2 B ≤ 4,800
• B)12 A + 8 B ≤ 4,800
• C)2 A + 1 B ≤ 4,800
• D)8 A + 12 B ≤ 4,800
• E)4 A + 8 B ≤ 4,800

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Definitions:

Equilibrium Price

The equilibrium price where the supply of items perfectly aligns with the demand for them in the marketplace.

Computers

Electronic devices designed to accept data, perform prescribed mathematical and logical operations at high speed, and display the results of these operations.

Production Costs

The total expense incurred in manufacturing goods or providing services, including labor, materials, and overheads.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of that good that suppliers are willing and able to provide.