The Production Planner for a Private Label Soft Drink Maker

question 54

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.
What is the daily profit when producing the optimal amounts?

• A) $960
• B) $1,560
• C) $1,800
• D) $1,900
• E) $2,520

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Definitions:

Probability

A measure of the likelihood that an event will occur, quantified between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Null Hypothesis

A type of hypothesis used in statistics that suggests there is no significant difference or effect in a particular condition, serving as a default position until evidence suggests otherwise.

P < .05

A statistical threshold indicating that the probability of observing the obtained result, or more extreme, if the null hypothesis is true, is less than 5%.

T-test

A statistical test used to compare the means of two groups or test a single mean against a known value.