A Grocery Store Manager Must Decide How to Best Present

question 60

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.
Which of the following is the objective function for the grocer's problem?

• A) Max P = 1.5M + 2.5C + 3B
• B) Min P = 1.5M + 2.5C + 3B
• C) Max P = 2.5M + 1.5C + 3B
• D) Max P = 2.5M + 3C + 1.5B
• E) Min P = 1.5M + 1.5C + 3B

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Definitions:

Partnership

A sanctioned form of business where partners collectively manage the enterprise and split the financial gains.

Contracts

Contracts that engage two or more persons in binding commitments recognized and updatable through legal proceedings.

RUPA

The Revised Uniform Partnership Act, a set of laws adopted by some states to govern the operation of partnerships.

Dissociation

In a legal context, the process by which a member is removed from a partnership or limited liability company.