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As a Supervisor of a Production Department, You Must Decide

question 59

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As a supervisor of a production department, you must decide the daily production totals of a certain product that has two models, the Deluxe and the Special.The profit on the Deluxe model is $12 per unit and the Special's profit is $10.Each model goes through two phases in the production process, and there are only 100 hours available daily at the construction stage and only 80 hours available at the finishing and inspection stage.Each Deluxe model requires 20 minutes of construction time and 10 minutes of finishing and inspection time.Each Special model requires 15 minutes of construction time and 15 minutes of finishing and inspection time.The company has also decided that the Special model must comprise at least 40 percent of the production total.What is an appropriate constraint for the finishing time?


Definitions:

Weak-Form Efficient

A theory stating that all past prices of a stock are reflected in its current price and that technical analysis cannot consistently outperform the market.

Above-Normal Rate Of Return

Earnings that exceed what is typically expected or required, often reflecting superior performance or risk.

Constant Rate

The steady, unchanging rate at which a quantity such as interest, growth, or decay progresses over time.

Dividend Yield

The ratio of a company's annual dividend payments to its share price, expressing the dividend as a percentage of the current share price.

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