The Production Manager for the Whoppy Soft Drink Company Is

question 73

Multiple Choice

The production manager for the Whoppy soft drink company is considering the production of two kinds of soft drinks: regular and diet. The company operates one 8-hour shift per day. Therefore, the production time is 480 minutes per day. During the production process, one of the main ingredients, syrup, is limited to maximum production capacity of 675 gallons per day. Production of a regular case requires 2 minutes and 5 gallons of syrup, while production of 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.
-For the production combination of 135 regular cases and 0 diet cases, which resource is completely used up (at capacity) ?

• A) only time
• B) only syrup
• C) time and syrup
• D) neither time nor syrup

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Definitions:

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Financial assets purchased with the intention and ability to hold them until a specific maturity date.

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Financial instruments bought and held primarily for selling them in the near term with the aim of generating profit on short-term price differences.

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The current value of a future amount of money or stream of cash flows given a specified rate of return, used to assess the worth of future cash flows today.

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