Multiple-Choice: A company markets two products, Alpha and Gamma. The contribution margins per gallon are $5 for Alpha and $4 for Gamma. Both products consist of two ingredients, D and K. Alpha contains 80 percent D and 20 percent K, while the proportions of the same ingredients in Gamma are 40 percent and 60 percent, respectively. The current inventory is 16,000 gallons of D and 6,000 gallons of K. The only company producing D and K is on strike and will neither deliver nor produce them in the foreseeable future. The company wishes to know the numbers of gallons of Alpha and Gamma that it should produce with its present stock of raw materials in order to maximize its total profit. Let X, refer to Alpha and X, refer to Gamma.

Required:

Transcribed Image Text:

a. The objective function for this problem could be expressed as: (1) Max 0X, +0X2. (2) Min 5X, 4X2 (3) Max 5X, 4X2. (4) Max X, X. (5) Max 4X, + 5X2. b. The constraint imposed by the quantity of D on hand could be expressed as: (1) X, X, 16.000. (2) X, X, 16,000. (3) .4X, .6X, 16,000. (4) .8X, 4X, 16.000. (5) .8X, 4X, 16,000.