The Production Planner for a Private Label Soft Drink Maker

question 44

Multiple Choice

The production planner for a private label soft drink maker is planning the production of two soft drinks: root beer (R) and sassafras soda (S) .There are at most 12 hours per day of production time and 1500 gallons per day of carbonated water available.A case of root beer requires 2 minutes of time and 5 gallons of water to produce,while a case of sassafras soda requires 3 minutes of time and 5 gallons of water.Profits for the root beer are $6.00 per case,and profits for the sassafras soda are $4.00 per case.
-What is the daily profit when producing the optimal amounts?

• A)$960.
• B)$1,560.
• C)$1,800.
• D)$1,900.
• E)$2,520.

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Definitions:

Capital Stock

The total amount of shares a company is authorized to issue, representing the owners' equity in the corporation.

Investing Activity

Financial activities related to the acquisition and sale of long-term assets and other investments not considered cash equivalents.

Income Statement

A fiscal statement detailing a firm's income, expenditures, and earnings during a determined timeframe.

Cash Flows

The aggregate sum of funds moving into and out of a company, particularly influencing its liquidity.