Hasselblad Company Manufactures Two Different Products, X and Y What Is the Equation for the Constraint on Materials?
A)5X

question 10

Multiple Choice

Hasselblad Company manufactures two different products, X and Y. The company has 100 pounds of materials and 300 direct labor hours available for production. The time requirements and contribution margins per unit are as follows: $\begin{array}{lcc}&\text { Froduct } \mathrm{X}& \text { Product } Y\\\text { Contribution margin per unit } & \$ 5 & \$ 6 \\\text { Materials per unit (lbs.) } & 2 & 3 \\\text { Direct labor hours per unit } & 5 & 3\end{array}$ What is the equation for the constraint on materials?

• A)5X + 6Y ? 300
• B)4X + 3Y ? 100
• C)5X + 6Y ? 100
• D)2X + 3Y ? 100

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Definitions:

Put Contract

A financial contract granting the owner the privilege to sell a certain asset at a predetermined price during a set period.

Option Price

The amount paid for the option itself, representing the price to buy (call) or sell (put) an underlying asset by a specific date at a specified price.

Exercise Price

The cost at which an option's possessor has the right to acquire (if it's a call option) or divest (if it's a put option) the asset underlying the option.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a specified quantity of an asset at a predetermined price within a specified time frame.