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

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

Step-by-step 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