The Operations Manager of a Mail Order House Purchases Double

question 7

Multiple Choice

The operations manager of a mail order house purchases double (D) and twin (T) beds for resale. Each double bed costs $500 and requires 100 cubic feet of storage space. Each twin bed costs $300 and requires 90 cubic feet of storage space. The manager has $75,000 to invest in beds this week, and her warehouse has 18,000 cubic feet available for storage. Profit for each double bed is $300 and for each twin bed is $150. The manager's goal is to maximize profits.
Which of the following is not a feasible solution?

• A) (D, T) = (0, 0)
• B) (D, T) = (0, 250)
• C) (D, T) = (150, 0)
• D) (D, T) = (90, 100)
• E) (D, T) = (0, 200)

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Definitions:

AFL and CIO

The American Federation of Labor and Congress of Industrial Organizations, a federation of labor unions in the United States.

Rival Unions

Labor unions that compete for the representation rights and membership of workers within the same workplace or industry.

Management

The process of planning, organizing, leading, and controlling resources and operations within an organization to achieve its objectives.

PATCO Strike

A significant labor strike in 1981 by the Professional Air Traffic Controllers Organization in the United States, which ended with the firing of striking workers by President Reagan.