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

question 38

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 storage space constraint?

• A) 100K - 90Q ≤ 18,000
• B) 90K + 100Q ≤ 18,000
• C) 300K + 90Q ≤ 18,000
• D) 500K + 100Q ≤ 18,000
• E) 100K + 90Q ≤ 18,000

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Definitions:

Operating Cash Flow

Cash generated from a company's regular business operations, indicating its ability to generate sufficient funds to maintain and grow operations.

Percentage Change

A statistical measure indicating how much a quantity has grown or shrunk in comparison with a previous number, usually expressed as a percentage.

Accounting Break-even

The point at which total revenues equal total expenses, resulting in no net profit or loss for the business.

Project Net Income

The total earnings expected to be generated by a project after accounting for all expenses and taxes.