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Problem:

The production manager for the Coory soft drink company is considering the production of 2 kinds of soft drinks: regular and diet. Two of her resources are constraint production time (8 hours = 480 minutes per day) and syrup (one of her ingredients) limited to 675 gallons per day. To produce a regular case requires 2 minutes and 5 gallons of syrup, while a diet case needs 4 minutes and 3 gallons of syrup. Profits for regular soft drink are $3.00 per case and profits for diet soft drink are $2.00 per case.

Required:

Question: What is the objective function?

A $3 R + $2 D
B $3 D + $2 R
C $4 D + $2 R
D $4 R + $2 D

Note: Explain all steps comprehensively.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91170826

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