Cully Furniture buys two products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 100 cubic feet of storage space, and each medium shelf costs $300 and requires 90 cubic feet of storage space. The company has $75,000 to invest in shelves this week, and the warehouse has 18,000 cubic feet available for storage. Profit for each big shelf is $300 and for each medium shelf is $150. If the furniture company purchases no big shelves and 200 medium shelves, which of the two resources will be completely used (at capacity)?
A) investment money only
B) storage space only
C) investment money and storage space
D) neither investment money nor storage space

Question

Quizplus · Accepted Answer

If Cully Furniture buys 200 medium shelves, the total cost would be 200 * $300 = $60,000, which is less than the $75,000 investment limit. The total storage space needed would be 200 * 90 cubic feet = 18,000 cubic feet, exactly filling the available storage space. Therefore, only the storage space is completely used.

Cully Furniture Buys Two Products for Resale: Big Shelves (B)