The Production Manager for Beer Etc

question 90

Multiple Choice

The production manager for Beer etc. produces two kinds of beer: light (L) and dark (D) . Two resources used to produce beer are malt and wheat. The manager can obtain at most 4800 oz of malt per week and at most 3200 oz of wheat per week, respectively. Each bottle of light beer requires 12 oz of malt and 4 oz of wheat, while a bottle of dark beer uses 8 oz of malt and 8 oz of wheat. Profits for light beer are $2 per bottle, and profits for dark beer are $1 per bottle.
-What is the optimal weekly profit?

• A) $1000
• B) $900
• C) $800
• D) $700

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Definitions:

Capitalizing

The accounting practice of spreading out the cost of a large expense over multiple reporting periods, often for long-term assets or investments.

Energy Saving Device

A device designed to reduce energy consumption without compromising the functionality of the equipment it is attached to.

Original Useful Life

Original Useful Life refers to the expected duration, typically measured in years, during which an asset is considered usable for its intended purpose.

Remaining Book Value

The net amount of an asset or liability recorded on the balance sheet, reflecting original cost adjusted for depreciation, amortization, and impairments.