A Local Bagel Shop Produces Bagels (B) and Croissants (C)

question 41

Multiple Choice

A local bagel shop produces bagels (B) and croissants (C) . Each bagel requires 6 ounces of flour, 1 gram of yeast, and 2 tablespoons of sugar. A croissant requires 3 ounces of flour, 1 gram of yeast, and 4 tablespoons of sugar. The company has 6,600 ounces of flour, 1,400 grams of yeast, and 4,800 tablespoons of sugar available for today's baking. Bagel profits are 20 cents each and croissant profits are 30 cents each. The shop wishes to maximize profits.
What is the daily profit when producing the optimal amounts?

• A) $580
• B) $340
• C) $220
• D) $380
• E) $420

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Definitions:

Rational Consumer

An assumption in economics that consumers always make logical decisions that provide them with the highest level of personal utility.

Net Borrower

An entity, such as a government or a business, that borrows more money than it lends, resulting in a net outflow of funds.

Interest Rate

The part of a loan that incurs interest for the borrower, generally expressed as an annual percentage of the outstanding loan.

Net Saver

An individual or institution that saves more resources or funds than they spend or consume.