Figure 25-7
the Following Information Is Available for the Johnson

question 24

Multiple Choice

Figure 25-7
The following information is available for the Johnson Boat Company, which sells two products: $\begin{array}{lcc}&\text { 3- Person Raft } & \text { Kayak } \\&\text { (Variable } A \text { ) } & \text { (Variable B) }\\\text { Selling price } & £ 50 & £ 80 \\\text { Variable costs } & £ 35 & £ 50 \\\text { Fixed costs (average) } & £ 10 & £ 20 \\\text { Processing time } & 2 \text { hours } & 4 \text { hours } \\\text { Vinyl cover used } & 16 \mathrm{sq} . \mathrm{ft} . & 12 \mathrm{sq} . \mathrm{ft} .\end{array}$
There are 100 hours available in the plant and 75 square metres of vinyl available per operating period.
-Refer to Figure 25-7. Which of the following statements is NOT correct?

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

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