It costs a certain company $100 to buy each unit of X, $200 for each

Question

It costs a certain company $100 to buy each unit of X, $200 for each unit of Y, and $300 for each unit of Z. The company then sells each unit of X for $200, each unit of Y for $300, and each unit of Z for $400. There are no other costs or revenue associated with X, Y, or Z. The company wants to select one of the following goals to prioritize.

A. Buy and then sell 3 units of X, 5 units of Y, and 4 units of Z.

B. Buy and then sell 2 units of X, 2 units of Y, and 3 units of Z.

C. Buy and then sell 8 units of X, 1 unit of Y, and 1 unit of Z.

D. Buy and then sell 2 units of X, 4 units of Y, and 2 units of Z.

E. Buy and then sell 1 unit of X, 4 units of Y, and 5 units of Z.

Select the goal that the company should prioritize to minimize its total Cost for X, Y, and Z and the goal that the company should prioritize to maximize its total Gross profit for X, Y, and Z. Make only two selections, one in each column.

rocky620 · Answer

The cost for each Goal:

A. Buy and then sell 3 units of X, 5 units of Y, and 4 units of Z. = 300+1000+1200 = 2500
B. Buy and then sell 2 units of X, 2 units of Y, and 3 units of Z. = 200+400+900 = 1500
C. Buy and then sell 8 units of X, 1 unit of Y, and 1 unit of Z. = 800+200+300 = 1300
D. Buy and then sell 2 units of X, 4 units of Y, and 2 units of Z. = 200+800+600 = 1600
E. Buy and then sell 1 unit of X, 4 units of Y, and 5 units of Z. = 100+800+1500 = 2400

So, Goal C will have the minimum cost. 
 
  The Profit For Each Plan:  
Since the Profit on each type of product - X, Y, and Z - is constant, $100, we just need to check which Goal has maximum number of units (buy and sell)

A = 12 units
B = 7 Units
C = 10 Units
D = 8 Units
E = 10 Units

So, Goal A will yield maximum profit

Malar95 · Answer

Howdy!
Did this on my handy dandy white board to assist a friend. Hope it helps.

rmahe11 · Answer

If we apply common sense for cost we must realise that in order to cost less the value of Y and Z should be minimum because their factor is 2 and 3 , so Cost for C can automatically be min but for gross profit value of x , y and z should be maximum hence A overall.

EnglishAgast · Answer

This pattern has to be observed. Thank you!

Cost	Gross profit
		(A)
		(B)
		(C)
		(D)
		(E)
		(F)

It costs a certain company $100 to buy each unit of X, $200 for each

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It costs a certain company $100 to buy each unit of X, $200 for each

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