Perth Mining Company Operates Two Mines for the Purpose of Extracting

Multiple Choice

Perth Mining Company operates two mines for the purpose of extracting gold and silver. The Saddle Mine costs $14,000/day to operate, and it yields 50 oz of gold and 3,000 oz of silver each day. The Horseshoe Mine costs $16,000/day to operate, and it yields 75 oz of gold and 1,000 oz of silver each day. Company management has set a target of at least 650 oz of gold and 11,000 oz of silver. How many days should each mine be operated so that the target can be met at a minimum cost?

A) Saddle Mine: 1 days; Horseshoe Mine: 8 days; minimum cost $107,000
B) Saddle Mine: 4 days; Horseshoe Mine: 3 days; minimum cost $106,000
C) Saddle Mine: 1 days; Horseshoe Mine: 8 days; minimum cost $142,000
D) Saddle Mine: 8 days; Horseshoe Mine: 1 days; minimum cost $128,000