Production variances related problem


Question: The production manager for Beer etc. produces two kinds of beer: light (L) and dark (D). Two resources used to produce beer are malt and wheat. He can get, at most, 4800 oz. of malt per week and 3200 oz. of wheat per week. Each bottle of light beer requires 12 oz. of malt and 4 oz. of wheat, while a bottle of dark beer uses 8 oz. of malt and 8 oz. of wheat. Profits for light beer are $2 per bottle, and profits for dark beer are $1 per bottle. If the production manager decides to produce of 0 bottles of light beer and 400 bottles of dark beer, it will result in slack of

  • malt only.
  • wheat only.
  • both malt and wheat.
  • neither malt and wheat.

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