Table 8-5 Each Coffee Table Produced by Timothy Kent Designers Nets the Nets

question 103

Multiple Choice

Table 8-5
Each coffee table produced by Timothy Kent Designers nets the firm a profit of $9.Each bookcase yields a $12 profit.Kent's firm is small and its resources limited.During any given production period (of 1 week) ,10 gallons of varnish and 12 lengths of high quality redwood are available.Each coffee table requires approximately 1 gallon of varnish and 1 length of redwood.Each bookcase takes 1 gallon of varnish and 2 lengths of wood.
T = number of tables produced each week
B = number of bookcases produced each week
-Referring to Table 8-5,which of the following constraints would be used?

• A)9T + 12B ≤ 12
• B)1T + 1B ≥ 10
• C)1T + 2B ≤ 12
• D)All of the above
• E)None of the above

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Definitions:

Inventory Increase

An rise in the quantity or value of goods held by a company for the purpose of sale in the normal course of business.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly involved in creating the good.

Accounts Payable Decrease

A reduction in the amount a company owes to its suppliers or vendors, indicating payments have been made.

Direct Method

A approach to cash flow statement preparation where actual cash receipts and payments are reported, instead of adjusting net income.