Up, Up & Away Is a Producer of Kites and Windsocks

question 106

Multiple Choice

Up, Up & Away is a producer of kites and windsocks. Relevant data concerning their production for the upcoming fiscal year are as follows: Assume: 1 shift/day, 8 hours/shift, 5 days/week, and 50 weeks/year.
There currently are four machines, and management wants a capacity cushion of 20 percent.
Which of the following alternatives will enable Up, Up & Away to meet all of the upcoming year's demand using the minimum number of machines?

• A) add six additional machines
• B) add five additional machines
• C) add four additional machines
• D) add three additional machines

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Definitions:

Vertical Axis

In graphing, the y-axis, which typically represents the dependent variable or the quantity being measured.

Utility Function

A mathematical representation that shows the relationship between an individual's consumption bundle and the level of satisfaction or utility derived from it.

Indifference Curves

Indifference curves are graphical representations used in microeconomics to demonstrate a consumer's preferences for various combinations of two goods, keeping satisfaction constant.

Horizontal Axis

A reference line on a graph or chart running left to right, typically used to represent the independent variable or basis of comparison.