Tieton Co Has Two Departments: Fabrication and Assembly

question 10

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 objective function to maximize Tieton's profits is:

• A) MAX$22T+ $16S
• B) MAX$20T+ $15S
• C) MAX$1T + $2S
• D) MAX$2T + $1S

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Definitions:

Memory

The processes by which information is encoded, stored, and retrieved.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, preventing them from seeing potential alternative uses.

Mental Set

A tendency to approach situations in a certain way because that method worked in the past, possibly hindering the ability to find alternative solutions.

Cognitive Map

A mental representation of the layout of one’s environment.