Sobeys Sells Fruit Trays Consisting of Pineapple and Melons

question 83

Multiple Choice

Sobeys sells fruit trays consisting of pineapple and melons. The manager of the fruit department obtains pineapples at a wholesale price of $2.50 per kg, and melons at $1.85 per kg. He is required to produce 10 kg of the mixed fruit. What is the maximum weight of pineapple that he can put in the mix in order to have an effective wholesale cost no greater than $2.00 per kg?

• A) 2.31 kg
• B) 7.69 kg
• C) 4.56 kg
• D) 4 kg
• E) 5.41 kg

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Definitions:

Earnings per Share

A financial ratio that measures the amount of a company's net income that is theoretically available for payment to holders of its common stock.

Book Value per Share

The equity available to shareholders divided by the number of outstanding shares, representing a company's assets minus its liabilities on a per-share basis.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Acid-Test Ratio

A financial metric that measures a company's ability to pay its short-term liabilities with its most liquid assets, excluding inventory.