The Golden Wheels Trailer Company Recorded the Following Information for Two

question 35

Multiple Choice

The Golden Wheels Trailer Company recorded the following information for two of their trailers: $\begin{array}{lcc}&\text { Trailer A } &\text { Trailer B }\\\text { Processing time } & 3 \text { hours } & 5 \text { hours } \\\text { Vinyl cover used } & 17 \text { sq. ft. } & 13 \mathrm{sq} . \mathrm{ft} \\\text { Selling price } & \$ 60.00 & \$ 90.00 \\\text { Variable cost } & \$ 45.00 & \$ 60.00 \\\text { Fixed cost } & \$ 20.00 & \$ 30.00\end{array}$
There are 100 hours available in the plant and 75 square feet of vinyl available per operating period.
Which of the following statements is INCORRECT?

• A)The materials constraint favors Trailer B over Trailer A.
• B)The time constraint favors Trailer A over Trailer B.
• C)The objective function favors Trailer B over Trailer A.
• D)The material constraint favors Trailer A over Trailer B.

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Definitions:

Trademarks

Symbols, names, phrases, or logos registered or established by use as representing a company or product.

Goodwill

The intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, representing future economic benefits.

Allocation

The distribution of a cost or expense across multiple departments, projects, or activities based on a predetermined criterion.

Depletion

The allocation of the cost of natural resources over their useful life, typically used in the mining, timber, petroleum, and similar industries.