Use the Scenario Given Below to Answer the Following Question(s)

question 1

Multiple Choice

Use the scenario given below to answer the following question(s) .
The Ranger group of industries has a factory that produces three types of action figures,types 1,2,and 3,on a make-to-order basis.The factory operates five days a week for 9 hours each day.The key decision facing the manager is what type of machine should be used to process each action figure during the coming quarter (13 weeks) .Two types of machines can be used: captain and regular.Captain machines can be used to make all action figures and are the only machines that can produce certain action figures,such as "The move action figures." Demands,variable costs for each type of machine,and production rates on the machines are given in the table below.
The factory has 30 regular machines and 6 captain machines.After manufacturing,the action figures are sent to the finishing department and then sold.Any action figure that cannot be manufactured in the factory because of limited capacity will be purchased from an external supplier,finished at the factory,and sold at the market selling price.
-If C_i,R_i,and P_i (where i = 1,2,3…) are used to denote the number of action figures to be produced on captain machines,the number of action figures to be produced on regular machines,and the number of action figures purchased from an outside supplier respectively,which of the following are the constraints that meet production requirements?

• A)C₁ + P₁ = 90,000 C₂+ R₂ + P₂ = 153,000 C₃ + R₃ + P₃ = 20,000
• B)R₁ + P₁ = 153,000 C₂+ R₂ + P₂ = 180,000 C₃ + R₃ + P₃ = 40,000
• C)R₁ + C₁ = 76,500 C₂+ R₂ + P₂ = 45,000 C₃ + R₃ + P₃ = 10,000
• D)R₁ + P₁ = 38,250 C₂+ R₂ + P₂ = 22,500 C₃ + R₃ + P₃ = 5,000

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Definitions:

Contract

A legally binding agreement between two or more parties defining the terms and conditions of a particular arrangement or transaction.

Journalize

The process of documenting business activities in a journal within the scope of accounting practices.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate years.

Transactions

Events that are recognized in the financial records, affecting the financial position and performance of a company.