The Production Manager for the Whoppy Soft Drink Company Is

question 29

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.
-The sensitivity range for the profit on a regular case of soda is

• A) $2 to $3.
• B) $2 to $4.
• C) $1 to $3.
• D) $1 to $3.33.

---

Definitions:

Product Customization

The process of tailoring a product to meet the specific needs or preferences of individual customers.

Dual Adaptation

A strategy where both the product and the marketing approach are modified to suit different markets or cultural practices.

Dual Integration

A business strategy that involves a company integrating both vertically (controlling supply chain processes) and horizontally (expanding product lines or markets) to enhance control and market power.

Product Invention

The creation of a completely new product that did not previously exist, often involving innovation and the development of new technologies or ideas.