The Production Planner for Fine Coffees, Inc

question 46

Multiple Choice

The production planner for Fine Coffees, Inc. produces two coffee blends: American (A) and British (B) . He can only get 300 pounds of Colombian beans per week and 200 pounds of Dominican beans per week. Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of bean. Profits for the American blend are $2.00 per pound, and profits for the British blend are $1.00 per pound. The goal of Fine Coffees, Inc. is to maximize profits.
What is the constraint for Colombian beans?

• A) A + 2B ≤ 4,800.
• B) 12A + 8B ≤ 4,800.
• C) 2A + B ≤ 4,800.
• D) 8A + 12B ≤ 4,800.
• E) 4A + 8B ≤ 4,800.

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Definitions:

Production Budget

An estimate of the total cost of production that includes direct labor, materials, and overhead expenses for a specific period.

Labour Requirements

The amount and type of labor necessary to produce a certain quantity of goods or to provide services.

Zero-Base Budgeting

A budgeting approach where every expense must be justified for each new period, starting from a "zero base," with no reference to prior years' budget.

Redundant Activities

Processes or tasks that are unnecessary or duplicative, leading to inefficiency within an organization.