The Operations Manager for the Blue Moon Brewing Co

question 49

Multiple Choice

The operations manager for the Blue Moon Brewing Co. produces two beers: Lite (L) and Dark (D) . He can only get 675 gallons of malt extract per day for brewing and his brewing hours are limited to 8 hours per day. To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract. Each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg and profits for Dark beer are $2.00 per keg.
-What is the objective function?

• A)P = 2L + 3D
• B)P = 2L + 4D
• C)P = 3L + 2D
• D)P = 4L + 2D
• E)P = 5L + 3D

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Definitions:

Owner's Capital Account

An equity account on the balance sheet representing the total amount of investment made by the owner(s) in the company, including profits retained in the business.

Balance Sheet Accounts

These are the financial accounts that appear on the balance sheet, including assets, liabilities, and equity accounts, representing the financial position of a company at a specific point in time.

Permanent Accounts

Financial accounts whose balances are carried over into the next accounting period, including assets, liabilities, and equity accounts.

Real Accounts

Accounts that represent assets, liabilities, and equity, which are not closed at the end of the accounting period and carry over their balances.