An Electronics Firm Produces Two Models of Pocket Calculators: the A-100

question 75

Multiple Choice

An electronics firm produces two models of pocket calculators: the A-100 (A) ,which is an inexpensive four-function calculator,and the B-200 (B) ,which also features square root and percent functions.Each model uses one (the same) circuit board,of which there are only 2,500 available for this week's production.Also,the company has allocated a maximum of 800 hours of assembly time this week for producing these calculators,of which the A-100 requires 15 minutes (.25 hours) each,and the B-200 requires 30 minutes (.5 hours) each to produce.The firm forecasts that it could sell a maximum of 4,000 A-100's this week and a maximum of 1,000 B-200's.Profits for the A-100 are $1.00 each,and profits for the B-200 are $4.00 each.Which of the following is not a feasible production/sales combination?

• A)0 A & 0 B
• B)0 A & 1,000 B
• C)1,800 A & 700 B
• D)2,500 A & 0 B
• E)100 A & 1,600 B

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Definitions:

Budgeted Costs

Projected expenses for a given period as part of an organization's financial planning.

Cost Center

A cost center is a division or department within an organization that does not directly add profit but incurs costs, such as HR or customer service.

Revenue Authority

The government agency responsible for tax collection and the enforcement of tax laws.

Cost Center

A department or unit within a business that does not directly generate revenue, but incurs costs for the company, typically evaluated on its cost efficiency.