Tieton Co Has Two Departments: Fabrication and Assembly

question 96

Multiple Choice

Tieton Co. has two departments: Fabrication and Assembly. They produce 2 products. Product T needs 6 hours in fabrication and 6 hours in assembly. Product S needs 2 hours in fabrication and 4 hours in assembly. Fabrication has 24 hours available and Assembly 18. Total variable costs are $20 and $15 for T and S respectively. T sells for $22 and S for $16.
The constraints for Tieton's 2 departments are:

• A) 6T + 2S <= 24 AND 6T + 4S <= 18
• B) 6T + 2S <= 18 AND 6T + 4S <= 24
• C) 6T + 6S <= 24 AND 2T + 4S <= 18
• D) 6T + 6S <= 18 AND 2T + 4S <= 24

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Definitions:

Technological Advance

Improvements or innovations in technology that enhance functionality, efficiency, or productivity across various sectors.

Expected Returns

The anticipated return on an investment, factoring in the probability of all possible outcomes.

R&D Expenditures

Funds allocated towards research and development activities in order to innovate or improve products or services.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition based on product differentiation.