Suppose a Liquor Store Sells Beer for a Net Profit $\min ( x + 2 y )$

question 41

Multiple Choice

Suppose a liquor store sells beer for a net profit of $1 per unit and wine for a net profit of $2 per unit.Let x equal the amount of beer sold and y equal the amount of wine sold.An algebraic formulation of the profit function is:

• A)
• \(\min ( x + 2 y )\)
• B)
• \(\min ( 2 x + y )\)
• C)
• \(\max ( x + 2 y )\)
• D)
• \(\max ( 2 x + y )\)

Distinguish between periodic and perpetual inventory systems and their impact on inventory management.

Understand the significance of liquidity ratios like the acid-test ratio and current ratio in evaluating a company's short-term financial health.

Clarify the retail and wholesaler roles in the distribution chain and their business models.

Understand the differences between merchandising and service companies in generating net income.

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