Question 1 Report
Table 1 shows the amount of water used each day by two departments in a textile firm. The firm has a fixed daily water supply of 1200 litres.
| Department | Water used per day, litres | Value of output per litre, $ |
|---|---|---|
| Dyeing | 700 | 8 |
| Finishing | 500 | 12 |
(a) Which department should receive extra water if the firm aims to maximise revenue? [1]
(b) Explain the reason for your answer. [1]
(a) The finishing department should receive extra water if the aim is to maximise revenue. [1]
(b) Each litre of water used in finishing produces output worth $12, compared with $8 per litre in dyeing. Allocating an additional scarce litre to finishing therefore generates the higher value of output. [1]
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