Winton Inc Has 12,000 Machine Hours Available Each Month

question 46

Multiple Choice

Winton Inc has 12,000 machine hours available each month.The following information on the company's four products is available: If market demand exceeds the available capacity,in what sequence should orders be filled to maximize the company's profits?

• A)Product W first,product X second,product Z third,and product Y last.
• B)Product Z first,product W second,product X third,and product Y last.
• C)Product X first,product W second,product Y third,and product Z last.
• D)Product X first,product Z second,product Y third,and product W last.

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Definitions:

Purely Competitive Seller

A seller in a market structure characterized by many sellers offering identical products, where no single seller can influence the market price.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or output in the short term.

Variable Cost

Costs that vary in total with changes in the level of production or other business activities.

Market Price

The existing cost for purchasing or selling an asset or service on the open market.