The Owner of Crackers, Inc

question 45

Multiple Choice

The owner of Crackers, Inc. produces both Deluxe (D) and Classic (C) crackers. She only has 4,800 ounces of sugar, 9,600 ounces of flour, and 2,000 ounces of salt for her next production run. A box of Deluxe crackers requires 2 ounces of sugar, 6 ounces of flour, and 1 ounce of salt to produce. A box of Classic crackers requires 3 ounces of sugar, 8 ounces of flour, and 2 ounces of salt to produce. Profits are 40 cents for a box of Deluxe crackers and 50 cents for a box of Classic crackers. Cracker's, Inc. would like to maximize profits.
What is the sugar constraint?

• A) 2D + 3C ≤ 4,800
• B) 6D + 8C ≤ 4,800
• C) 1D + 2C ≤ 4,800
• D) 3D + 2C ≤ 4,800
• E) 4D + 5C ≤ 4,800

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Definitions:

Cyclical Industry

An industry whose performance is heavily dependent on the overall economic cycle, experiencing higher demand during economic upturns and lower demand during downturns.

Automobile Industry

A global sector that encompasses the design, manufacturing, marketing, and selling of motor vehicles, one of the world's most important economic sectors.

Trough

The transition point between recession and recovery.

Business Cycle

The economic cycle that involves periods of economic expansion, peak, contraction, and trough.