Given the Technology Matrix A, and an External Demand Vector $A = \left[ \begin{array} { l l } 0.4 & 0.3 \\0.1 & 0.2\end{array} \right]$

question 97

Multiple Choice

Given the technology matrix A, and an external demand vector D, find the production vector X.
$A = \left[ \begin{array} { l l } 0.4 & 0.3 \\0.1 & 0.2\end{array} \right]$ , $D = \left[ \begin{array} { l } 30,000 \\25,000\end{array} \right]$

• A) \(X = \left[ \begin{array} { l }
• 40,000 \\
• 70,000
• \end{array} \right]\)
• B) \(X = \left[ \begin{array} { l }
• 70,000 \\
• 40,000
• \end{array} \right]\)
• C) \(X = \left[ \begin{array} { l }
• 64,000 \\
• 40,000
• \end{array} \right]\)
• D) \(X = \left[ \begin{array} { l }
• 70,000 \\
• 64,000
• \end{array} \right]\)
• E) \(X = \left[ \begin{array} { l }
• 40,000 \\
• 64,000
• \end{array} \right]\)

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Definitions:

Direct Materials Cost

The expense associated with the raw materials and components used in the manufacturing of a product.

Work In Process

Inventory that includes goods that are in the production process but are not yet completed, representing a component of a manufacturing company's current assets.

Manufacturing Overhead Cost

Expenses related to the manufacturing process that cannot be directly traced to individual products, such as factory rent, utilities, and equipment depreciation.

Cost Of Goods Manufactured

The total cost associated with producing goods, including materials, labor, and overhead, that is ready for sale during a specific time period.