Feasible purchase combination

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Reference no: EM132226431

The logistics/operations manager of a mail order house purchases two products for resale: King Beds (K) and Queen Beds (Q). Each King Bed costs $500 and requires 100 cubic feet of storage space, and each Queen 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 King Bed is $300, and for each Queen Bed is $150.

1) Which of the following is not a feasible purchase combination?

A. 0 King Beds and 0 Queen Beds

B. 0 King Beds and 250 Queen Beds

C. 150 King Beds and 0 Queen Beds

D. 90 King Beds and 100 Queen Beds

E. 0 King Beds and 200 Queen Beds

2) For the purchase combination 0 King Beds and 200 Queen Beds, which resource is "slack" (not fully used)?

A. investment money (only)

B. storage space (only)

C. both investment money and storage space

D. neither investment money nor storage space

E. cannot be determined exactly

Reference no: EM132226431

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