Deluxe River Cruises Operates a Fleet of River Vessels

Multiple Choice

Deluxe River Cruises operates a fleet of river vessels. The fleet has two types of vessels: A type-A vessel has 50 deluxe cabins and 190 standard cabins, whereas a type-B vessel has 80 deluxe cabins and 140 standard cabins. Under a charter agreement with Odyssey Travel Agency, Deluxe River Cruises is to provide Odyssey with a minimum of 340 deluxe and 800 standard cabins for their 15-day cruise in May. It costs $44,000 to operate a type-A vessel and $54,000 to operate a type-B vessel for that period. How many of each type vessel should be used in order to keep the operating costs to a minimum? What is the minimum cost?

A) 3 type-A vessels; 2 type-B vessels; $240,000
B) 0 type-A vessels; 6 type-B vessels; $324,000
C) 2 type-A vessels; 3 type-B vessels; $250,000
D) 7 type-A vessels; 0 type-B vessels; $308,000