The Production Manager for the Softy Soft Drink Company Is

question 6

Multiple Choice

The production manager for the Softy soft drink company is considering the production of two kinds of soft drinks: regular and diet. Two of her resources are production time (8 hours = 480 minutes per day) and syrup (1 of the ingredients) limited to 675 gallons per day. To produce a regular case requires 2 minutes and 5 gallons of syrup, while a diet case needs 4 minutes and 3 gallons of syrup. Profits for regular soft drink are $3.00 per case and profits for diet soft drink are $2.00 per case. What is the time constraint?

• A) 2R + 4D ≤ 480
• B) 2D + 4R ≤ 480
• C) 2R + 3D ≤ 480
• D) 3R + 2D ≤ 480

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Definitions:

Capital Structure

The combination of borrowing and ownership investments utilized by a company to finance its activities and expansion.

WACC

A method known as the Weighted Average Cost of Capital (WACC) is used to calculate a corporation's cost of capital, with every capital category assigned a proportional weight.

Historic Costs

The original monetary value of an asset or transaction, without accounting for inflation, depreciation, or appreciation, used as a basis for the financial accounting of assets.

Book Values

The value of an asset as recorded in the company's books or financial statements, often differing from its market value.