The Production Planner for a Private Label Soft Drink Maker

question 76

Multiple Choice

The production planner for a private label soft drink maker is planning the production of two soft drinks: root beer (R) and sassafras soda (S) . There are at most 12 hours per day of production time and 1,500 gallons per day of carbonated water available. A case of root beer requires 2 minutes of time and 5 gallons of water to produce, while a case of sassafras soda requires 3 minutes of time and 5 gallons of water. Profits for the root beer are $6.00 per case, and profits for the sassafras soda are $4.00 per case. The firm's goal is to maximize profits.
Which of the following is not a feasible solution?

• A) (R, S) = (0, 0)
• B) (R, S) = (0, 240)
• C) (R, S) = (180, 120)
• D) (R, S) = (300, 0)
• E) (R, S) = (180, 240)

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Definitions:

Liability Accounts

Accounts on a balance sheet that represent obligations or debts of a company that are expected to be paid in the future.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use, reflecting its decline in value over time.

Permanent Account

Financial accounts that are not closed at the end of an accounting period and whose balances are carried forward to the next period.

Post-closing Trial Balance

A financial statement prepared after closing entries are made, listing all the account balances to check the equality of debits and credits.