Nekita Corporation Assembles Cell Phones and Camera Cell Phones at Two

question 4

Multiple Choice

Nekita Corporation assembles cell phones and camera cell phones at two different factories within the same city. During each hour at the first factory, 15 cell phones and 30 camera cell phones can be assembled at a cost of $130/hour. During each hour at the second factory, 10 cell phones and 60 camera cell phones can be assembled at a cost of $160/hour. If Nekita expects weekly orders for at least 15,000 cell phones and at least 45,000 camera cell phones, how many hours per week should it schedule at each location to be able to fill the orders at minimum cost? What is the minimum cost? ​

• A)Minimum of $157,500 when assembly is scheduled for 750 hours at the first factory and 375 hours at the second factory.
• B)Minimum of $153,250 when assembly is scheduled for 625 hours at the first factory and 450 hours at the second factory.
• C)Minimum of $151,750 when assembly is scheduled for 675 hours at the first factory and 400 hours at the second factory.
• D)Minimum of $161,200 when assembly is scheduled for 520 hours at the first factory and 585 hours at the second factory.
• E)Minimum of $150,250 when assembly is scheduled for 725 hours at the first factory and 350 hours at the second factory.

---

Definitions:

Price Ceiling

A legal maximum price for a good or service, above which it cannot be sold, typically set by government to protect consumers.

Shortage/Surplus

A state in the market where the demand for goods exceeds the supply, leading to a shortage, or where the supply surpasses demand, resulting in a surplus.

Price Floor

A government- or group-imposed limit on how low a price can be charged for a product, intended to prevent prices from dropping too low.

Shortage/Surplus

A market condition: shortage occurs when demand exceeds supply, and surplus happens when supply exceeds demand.