Deluxe River Cruises Operates a Fleet of River Vessels

question 12

Multiple Choice

Deluxe River Cruises operates a fleet of river vessels. The fleet has two types of vessels: a type A vessel has 60 deluxe cabins and 160 standard cabins, whereas a type B vessel has 80 deluxe cabins and 120 standard cabins. Under a charter agreement with the Odyssey Travel Agency, Deluxe River Cruises is to provide Odyssey with a minimum of 780 deluxe and 1520 standard cabins for their 20-day cruise in May. It costs $49,000 to operate a type A vessel and $54,000 to operate a type B vessel for that period. How many of each type of vessel should be used to keep the operating costs to a minimum?

• A) The mininmum operating cost is $565,000.
• B) The mininmum operating cost is $577,000.
• C) The mininmum operating cost is $569,000.
• D) The mininmum operating cost is $573,000.
• E) The mininmum operating cost is $561,000.

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