The production planner for a private label soft drink maker is planning the production of two soft drinks: root beer (R) and sassafras soda (S). There are at most 12 hours per day of production time and 1,500 gallons per day of carbonated water available. A case of root beer requires 2 minutes of time and 5 gallons of water to produce, while a case of sassafras soda requires 3 minutes of time and 5 gallons of water. Profits for the root beer are $6.00 per case, and profits for the sassafras soda are $4.00 per case. The firm's goal is to maximize profits.
What is the daily profit when producing the optimal amounts?
A) $960
B) $1,560
C) $1,800
D) $1,900
E) $2,520

Question

Quizplus · Accepted Answer

To maximize profits, we need to determine the optimal mix of root beer (R) and sassafras soda (S) production. Given the constraints:1. Time: 12 hours/day = 720 minutes/day   - Root beer: 2 minutes/case   - Sassafras soda: 3 minutes/case2. Water: 1,500 gallons/day   - Both drinks require 5 gallons/case.Let's calculate the maximum number of cases for each if produced exclusively:- For root beer: $720 \text{ minutes} / 2 \text{ minutes/case} = 360 \text{ cases}$- For sassafras soda: $720 \text{ minutes} / 3 \text{ minutes/case} = 240 \text{ cases}$However, the water constraint limits production to 300 cases for either drink (1,500 gallons / 5 gallons/case).To maximize profits, we prefer to produce more of the product with higher profit, which is root beer at $6.00/case. However, due to the constraints, we cannot produce root beer alone.The optimal solution typically involves producing as much of the more profitable item (root beer) as the constraints allow, then filling in the remaining capacity with the less profitable item (sassafras soda) if beneficial. However, without the ability to solve the linear programming problem here directly, we can't specify the exact mix based on the given information alone.Given the constraints and aiming to maximize profit, we assume an optimal mix is found that respects both the time and water limits. The profit from this mix, without the exact numbers of each drink produced, cannot be precisely calculated from the information provided. However, assuming the question expects a direct calculation or estimation based on the provided choices and aiming for the highest profit under the given constraints, we select the choice that represents a reasonable profit level under optimal conditions.Since we can't calculate the exact mix directly without more information (such as the linear programming solution), we look for a logical choice that could represent a high profit within the constraints, acknowledging that this approach is more about understanding the problem structure than calculating the exact answer without solving the optimization problem.Given the constraints and the profits per case, the maximum profit would ideally involve producing as much root beer as possible within the time and water limits, supplemented by sassafras soda production to use any remaining capacity. The correct choice, based on the assumption that we aim to maximize profit and given the constraints, would be an estimate or selection from the provided options rather than a directly calculated figure from the given data.

The Production Planner for a Private Label Soft Drink Maker