A Company Produces Product a and Product B

question 12

Multiple Choice

A company produces product A and product B.Each product must go through two processes.Each A produced requires two hours in process 1 and five hours in process 2.Each B produced requires six hours in process 1 and three hours in process 2.There are 80 hours of capacity available each week in each process.Each A produced generates $6.00 in profit for the company.Each B produced generates $9.00 in profit for the company.If the company produces 6 units of A and 9 units of B the capacity constraint for Process 2 is

• A)5A + 3B > 80
• B)6A + 3 B < 80
• C)5A + 3B < 80
• D)5A + 3B < 80.

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Definitions:

Offer

A proposal presented by one party to another as a basis for negotiation, intending to create a binding legal agreement upon acceptance.

Interim Agreement

A binding contract that will subsequently be put into a more formal document; usually referred to as an agreement of purchase and sale in a real estate transaction.

Binding Contract

A legal agreement between parties that is enforceable by law, where each party has specific obligations.

Agreement

A mutual understanding between two or more parties about their respective rights and duties regarding past or future performances.