Figure 13-5

question 67

Multiple Choice

Figure 13-5. Santorino Company produces two models of a component,Model K-3 and Model P-4.The unit contribution margin for Model K-3 is $6; the unit contribution margin for Model P-4 is $14.Each model must spend time on a special machine.The firm owns two machines that together provide 4,000 hours of machine time per year.Model K-3 requires 15 minutes of machine time; Model P-4 requires 30 minutes of machine time.
Refer to Figure 13-5.Now suppose that Santorino Company can sell only 5,500 units of each model.How many units of Model P-4 should be produced?

• A)5,500
• B)5,000
• C)1,250
• D)2,750
• E)1,375

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Definitions:

Stereotype

A widely held but fixed and oversimplified image or idea of a particular type of person or thing, often based on limited or superficial information.

Perception Components

The elements that contribute to the process of interpreting and understanding sensory information, including selection, organization, and interpretation.

Selectivity

The action or process of choosing or selecting something from a group according to specific criteria.

Constancy

The quality of being unchanging or steadfast over a period of time.