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

---

Definitions:

Delegate

The act of assigning authority or responsibility to another person to carry out specific activities.

Stable Vital Signs

Indicators such as heart rate, blood pressure, respiratory rate, and temperature that are within normal ranges and show no signs of distress or dysfunction.

Qualitative Research

A method of inquiry employed in several different academic disciplines, traditionally in the social sciences, focusing on understanding concepts, thoughts, or experiences rather than quantifying them.

Intensive Care Unit

A hospital unit specialized in the care of patients who require intensive monitoring, medication, and nursing services due to severe illness or injuries.