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

question 64

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.
For the purchase combination 0 king beds and 200 queen beds, which resource is slack (not fully used) ?

• A)investment money (only)
• B)storage space (only)
• C)both investment money and storage space
• D)neither investment money nor storage space
• E)cannot be determined exactly

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Definitions:

Spending Variance

A financial metric that compares the actual amount spent to the budgeted or planned amount in a certain period.

Press Runs

A term often used in printing or manufacturing indicating the number of times a machine produces a particular set of print materials in a single operation.

Book Set-Ups

The initial configuration and adjustments made in accounting records or financial statements preparation.

Wages And Salaries

Compensation paid to employees for their services, with wages often calculated on an hourly basis and salaries on an annual basis.