Banner Tools Produces Two Styles of Steel Hammers with Wooden

question 47

Multiple Choice

Banner Tools produces two styles of steel hammers with wooden handles.The first sells for $6 and consists of .5 pounds of steel; the second sells for $15 and consists of 1 pound of steel.Since steel costs the firm $4 per pound and the handle, labor, and packaging costs amount to $1 for either hammer, the profits coefficients are $6 - .5($4) - $1 = $3 for the smaller hammer and $15 - 1($4) - $1 = $10 for the larger hammer.Thus the objective function for this model is MAX 3X₁ + 10X₂.Given that the shadow price for steel is $2, which of the following statements is correct?

• A)Banner should not buy more steel.
• B)Banner should buy all the steel it can only if it can purchase it for less than $2 per pound.
• C)Banner should buy at least as much as the "ALLOWABLE INCREASE", but only if it can be purchased for less than $2 per pound.
• D)Banner should buy at least as much as the "ALLOWABLE INCREASE", but only if it can be purchase for less than $6 per pound.

Know the role of investment bankers in mergers and acquisitions.

Recognize the implications of managerial motives in pursuing mergers and acquisitions.

Understand the importance and principles of confidentiality and privacy in social work.

Recognize the ethical obligations in managing conflicts of interest between personal and professional responsibilities.

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Definitions:

Internal Failure Costs

Costs incurred due to defects in products before they are shipped to customers, such as scrap and rework expenses.

Quality Cost Report

A document that identifies the costs associated with preventing, detecting, and correcting defects in products.

Circle K Toys

Presumed to be a fictional or specific brand name related to toy retail, without specific universal definition or recognition as a significant entity.

Appraisal Cost

Appraisal costs are expenses associated with the inspection and testing of materials and products to ensure quality standards are met.