The production planner for Fine Coffees,Inc.produces two coffee blends: American (A)and British (B).Two of his resources are constrained: Columbia beans,of which he can get at most 300 pounds (4,800 ounces)per week; and Dominican beans,of which he can get at most 200 pounds (3,200 ounces)per week.Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans; while a pound of British blend coffee uses 8 ounces of each type of bean.Profits for the American blend are $2.00 per pound,and profits for the British blend are $1.00 per pound.For the production combination of 0 American and 400 British,which resource is "slack" (not fully used)?
A)Colombian beans (only)
B)Dominican beans (only)
C)Both Colombian beans and Dominican beans
D)Neither Colombian beans nor Dominican beans
E)Cannot be determined exactly

Question

Quizplus · Accepted Answer

For 0 American blend and 400 British blend, we need 0*12 + 400*8 = 3200 ounces of Colombian beans and 0*4 + 400*4 = 1600 ounces of Dominican beans. Since we can get at most 4800 ounces of Colombian beans and 3200 ounces of Dominican beans, we have slack for Colombian beans i.e. we are not using the maximum capacity of this resource. Therefore, the answer is A.

The Production Planner for Fine Coffees,Inc