Question

The owner of Artisanal Chips etc. produces three flavors of artisanal corn chips marketed at new college graduates — pumpkin (P), chipotle adobo (A) and basement (B). He has a limited amount of the three ingredients used to produce these chips available for his next production run: 1,000 ounces of salt, 2,000 ounces of maize, and 1,200 ounces of herbs. A bag of pumpkin chips requires 2 ounces of salt, 6 ounces of maize, and 1.75 ounces of herbs to produce; while a bag of chipotle-adobo chips requires 6 ounces of salt, 6 ounces of maize, and 5 ounces of herbs. A bag of basement chips requires 1.75 ounces of salt, 3.5 ounces of maize, and 1.5 ounces of herbs. Profits for a bag of basement chips are $0.40, for chipotle-adobo chips is $0.60, and for a bag of pumpkin chips $0.50.
For the production combination of 100 bags of each flavor of chips, which of the three resources is (are) not completely used?

a. salt and herbs only
b. salt and maize only
c. herbs maize and salt
d. maize only

Answer 1

Answer:

Artisanal Chips

For the production combination of 100 bags of each flavor of chips, the three resources are not completely used are:

c. herbs, maize, and salt

Explanation:

a) Data and Calculations:

Ingredients  Ounces   Usage per Bag

                                     Pumpkin   Chipotle    Basement

Salt                1,000           2               6                  1.75

Maize           2,000           6               6                  3.5

Herbs            1,200           1.75           5                  1.5

                             Basement    Chipotle    Pumpkin

Profits for a bag      $0.40           $0.60     $0.50

Total ingredients required for 100 bags of each:

             Resources  Pumpkin   Chipotle Basement    Total     Unused

                                                                                     Usage  Resources

Salt           1,000           200           600        175           975        25 ounces

Maize      2,000           600           600       350        1,550      450 ounces

Herbs      1,200           175             500        150          825      375 ounces