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The Logistics/operations Manager of a Mail Order House Purchases Two

Question 64

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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.
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

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