Figure 25-4
the Following Information Is Available for Wilson Trailer

question 10

Multiple Choice

Figure 25-4
The following information is available for Wilson Trailer Company, which sells two products: $$\begin{array} { l c c } & \text { Trailer A } & \text { Trailer B } \\\text { Processing time } & 2 \text { hours } & 4 \text { hours } \\\text { Vinyl cover used } & 16 \text { sq. ft. } & 12 \text { sq. ft. } \\\text { Selling price } & £ 50.00 & £ 80.00 \\\text { Variable cost } & £ 35.00 & £ 50.00 \\\text { Fixed cost } & £ 10.00 & £ 20.00\end{array}$$ There are 100 hours available in the plant and 75 square metres of vinyl available per operating period.
-Refer to Figure 25-4. Which of the following statements is INCORRECT?

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

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Definitions:

Domestic Supply

Refers to the total amount of goods and services produced within a country's borders, available for domestic consumption and export.

Demand Schedules

Tables that show the relationship between the price of a good and the quantity demanded by consumers at those prices, typically illustrating the law of demand.

World Price

A good or service's price on the international market, shaped by worldwide supply and demand forces.

Per-Unit Tariff

A fixed fee charged by a government on each unit of goods imported, intended to protect domestic industries.