Cully Furniture Buys Two Products for Resale: Big Shelves (B)

question 10

Multiple Choice

Cully Furniture buys two products for resale: big shelves (B) and medium shelves (M) . Each big shelf costs $500 and requires 100 cubic feet of storage space, and each medium shelf costs $300 and requires 90 cubic feet of storage space. The company has $75,000 to invest in shelves this week, and the warehouse has 18,000 cubic feet available for storage. Profit for each big shelf is $300 and for each medium shelf is $150. If the furniture company purchases no big shelves and 200 medium shelves, which of the two resources will be completely used (at capacity) ?

• A) investment money only
• B) storage space only
• C) investment money and storage space
• D) neither investment money nor storage space

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