Question

Question 21 A grocery store manager must decide how to best present a limited supply of milk and cookies to its customers. Milk can be sold by itself for a profit of $1.50 per gallon. Cookies can likewise be sold at a profit of $2.50 per dozen. To increase appeal to customers, one gallon of milk and a dozen cookies can be packaged together and are then sold for a profit of $3.00 per bundle. The manager has 100 gallons of milk and 150 dozen cookies available each day. The manager has decided to stock at least 75 gallons of milk per day and demand for cookies is always 140 dozen per day. To maximize profits, how much of each product should the manager stock.

Which of the following is the objective function for the grocer's problem?

E) Min P = 1.5M + 1.5C + 3B

B) Min P = 1.5M + 2.5C + 3B

C) Max P = 2.5M + 1.5C + 3B

D) Max P = 2.5M + 3C + 1.5B

A) Max P = 1.5M + 2.5C + 3B

Question 22 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.

What is the objective function?

B) P = 500D + 300T

D) P = 300D + 150T

A) P = 150D + 300T

E) P = 100D + 90T

C) P = 300D + 500T

Question 23 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. Crackers, Inc. would like to maximize profits.

What is the sugar constraint?

E) 4D + 5C ≤ 4,800

B) 6D + 8C ≤ 4,800

D) 3D + 2C ≤ 4,800

C) 1D + 2C ≤ 4,800

A) 2D + 3C ≤ 4,800

Question 24 A manager has determined that a potential new product can be sold at a price of $20.00 each. The cost to produce the product is $10.00, but the equipment necessary for production must be leased for $75,000 per year. What is the break- even point?

D) 10,000 units.

C) 7,500 units.

B) 5,000 units.

E) 25,000 units.

A) 2,500 units.

Question 25 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. Crackers, Inc. would like to maximize profits.

What is the daily profit when producing the optimal amounts?

B) $500

A) $800

E) $600

C) $640

D) $620

Question 26 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. Crackers, Inc. would like to maximize profits.

Which of the following is not a feasible solution?

B) (D, C) = (0, 1000)

D) (D, C) = (1600, 0)

C) (D, C) = (800, 600)

A) (D, C) = (0, 0)

E) (D, C) = (0, 1,200)

Question 27 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.

What is the storage space constraint?

E) 100D + 90T ≤ 18,000

A) 90D + 100T ≤ 18,000

C) 300D + 90T ≤ 18,000

B) 100D + 90T ≥ 18,000

Question 29 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?

E) (D, T) = (0, 200)

D) (D, T) = (90, 100)

B) (D, T) = (0, 250)

C) (D, T) = (150, 0)

A) (D, T) = (0, 0)

Question 30

Using Excel's Solver add-in, find the optimal solution for the following problem?

Maximize P = 8x + 3y subject to 2x + 4y ≤ 20

6x + 3y ≤ 18 and x ≥ 0, y ≥ 0.

C) (x, y) = (0, 0)

E) None of the answer choices are correct.

B) (x, y) = (0, 3)

D) (x, y) = (0, 5)

A) (x, y) = (3, 0)

Answer 1

Question 21

Correct answer is A) Max P = 1.5M + 2.5C + 3B

Question 22

Correct answer is D) P = 300D + 150T

Question 23

Correct answer is A) 2D + 3C <= 4,800

Question 24

break-even point = fixed cost/(selling price per unit-cost per unit) = 75000/(20-10) = 7500

Correct answer is C) 7,500 units

Question 25

Correct answer is C) $640

Solver screenshot

Solver formula

Solver window

Question 26

Correct answer is E) (D, C) = (0, 1,200)

This is not a feasible solution as this violates Salt constraint where LHS 0*1+1200*2 = 2400 ounce is > RHS instead of <= as required by the problem

Question 27

Correct answer is E) 100D + 90T ≤ 18,000

Question 29

Correct answer is B) (D, T) = (0, 250)

This is not a feasible solution as this violates storage space constraint

Question 30

Correct answer is A) (x, y) = (3, 0)

Solver screenshot

Solver formula