The Operations Manager of a Mail Order House Purchases Double

question 74

Multiple Choice

The operations manager of a mail order house purchases double (D) and twin (T) beds for resale. Each double bed costs $500 and requires 100 cubic feet of storage space. Each twin 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 double bed is $300 and for each twin bed is $150.
-What is the objective function?

• A)P = 150D + 300T
• B)P = 500D + 300T
• C)P = 300D + 500T
• D)P = 300D + 150T
• E)P = 100D + 90T

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Definitions:

Journal Entry

This term refers to the method used in bookkeeping to log transactions where each entry must have a corresponding and opposite entry within the financial records.

Income Beneficiary

An individual or entity entitled to receive income from a trust, estate, or other income-generating assets.

Journal Entry

A journal entry is a record of a financial transaction in the accounting system of a business, consisting of debit and credit entries to maintain the double-entry bookkeeping system.

Federal Income Tax

The tax levied by the United States Internal Revenue Service on the annual earnings of individuals, corporations, trusts, and other legal entities.