The Owner of Chips Etc

question 67

Short Answer

The owner of Chips etc. produces two kinds of chips: lime (L) and vinegar (V). He has a limited amount of the three ingredients used to produce these chips available for his next production run: 4800 ounces of salt, 9600 ounces of flour, and 2000 ounces of herbs. A bag of lime chips requires 2 ounces of salt, 6 ounces of flour, and 1 ounce of herbs to produce; while a bag of vinegar chips requires 3 ounces of salt, 8 ounces of flour, and 2 ounces of herbs. Profits for a bag of lime chips are $0.40, and for a bag of vinegar chips $0.50.
-The production combination of 450 bags of lime and 800 bags of vinegar is not feasible because one resource is exceeded. Which resource is exceeded and how much more is needed to produce this combination?

---

Definitions:

Variable Cost

Costs that change in proportion to the good or service that a business produces.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.

Default Percent

The percentage of loans or debts that are not paid back in accordance with the terms agreed upon by borrowers and lenders.

Variable Cost

A cost that varies with the level of output or sales, such as materials and labor costs.