The Logistics/operations Manager of a Mail Order House Purchases Two

question 85

Multiple Choice

The logistics/operations manager of a mail order house purchases two products for resale: king beds (K) and queen beds (Q) . Each king bed costs $500 and requires 100 cubic feet of storage space, and each queen bed costs $300 and requires 90 cubic feet of storage space. The manager has $75,000 to invest in beds this week, and her warehouse has 18,000 cubic feet available for storage. Profit for each king bed is $300 and for each queen bed is $150.
What is the objective function?

• A)Z = $150 K + $300 Q
• B)Z = $500 K + $300 Q
• C)Z = $300 K + $150 Q
• D)Z = $300 K + $500 Q
• E)Z = $100 K + $90 Q

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Definitions:

Credit

The provision of resources (such as money) by one party to another party where the second party does not reimburse the first party immediately, but promises either to repay or return those resources at a later date.

Transposition Error

A common accounting mistake where numbers are mistakenly reordered, leading to inaccurate data entry.

Trial Balance

A worksheet used in accounting that compiles all ledger balances into matching total amounts in debit and credit columns.

Debit Totals

An aggregate amount of all debits recorded in an accounting period, indicating resources used or expenses.