A Grocery Store Manager Must Decide How to Best Present

question 15

Multiple Choice

A grocery store manager must decide how to best present a limited supply of milk and cookies to its customers. Milk can be sold by itself for a profit of $1.50 per gallon. Cookies can likewise be sold at a profit of $2.50 per dozen. To increase appeal to customers, one gallon of milk and a dozen cookies can be packaged together and are then sold for a profit of $3.00 per bundle. The manager has 100 gallons of milk and 150 dozen cookies available each day. The manager has decided to stock at least 75 gallons of milk per day and demand for cookies is always 140 dozen per day. To maximize profits, how much of each product should the manager stock.
The manager's problem falls within which classification?

• A) Resource-allocation
• B) Cost-benefit-trade-off
• C) Mixed problems
• D) Transportation problems
• E) Assignment problems

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Definitions:

Service Industry Jobs

Employment opportunities within sectors that provide services instead of goods, such as hospitality, banking, and health care.

Chinese Men

This phrase might refer to male individuals of Chinese nationality or ethnic heritage, but without further context, it lacks specificity for a precise definition.

Urban Areas

Designated regions characterized by higher population density and vast human features in comparison to areas surrounding them.

Homestead Act

Legislation passed in 1862 in the United States that granted 160 acres of public land to settlers for a small fee, provided they improve the land by building a dwelling and cultivating crops.