Figure 25-6
Anderson Company Manufactures Two Different Products: a and B

question 3

Multiple Choice

Figure 25-6
Anderson Company manufactures two different products: A and B. The company has 100 kgs of raw materials and 300 direct labour-hours available for production.
The time requirements and contribution margins per unit are as follows: $\begin{array}{lcr}&A&B\\\text { Raw materials per unit (lbs.) } & 1 & 2 \\\text { Direct-labour hours per unit } & 4 & 2 \\\text { Contribution margin per unit } & E 4 & E 5\end{array}$
-Refer to Figure 25-6. What is the objective function for Anderson Company?

• A)Minimize £4A + £5B.
• B)Maximize £4A + £5B.
• C)Maximize £1A + £2B.
• D)Maximize £4A + £2B.

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Definitions:

Working Papers

Documents that contain the data and analysis used by accountants and auditors as part of their examinations.

Data-Gathering Process

The systematic procedure of collecting, measuring, and analyzing accurate data for research or assessment purposes.

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Inferences or judgments made after considering all the available evidence and arguments.

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