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:

Profits and Losses

Refers to the financial gains and expenses incurred by a business, showing whether it has made a profit or suffered a loss over a particular period.

Capital Account Balances

The amounts in the accounts of partners or shareholders representing their contributions plus their share of net income or minus their share of losses.

Predistribution Plan

A strategic plan detailing how assets or profits will be allocated or distributed before the actual distribution takes place.

Profits and Losses

The financial gains or losses resulting from business operations after accounting for revenues and expenses.