Use the Table Below to Answer the Following Question(s)

question 40

Multiple Choice

Use the table below to answer the following question(s) .
Remington Textiles has a mill that produces three types of fabrics on a make-to-order basis.The mill operates on a 24/7 basis.The key decision facing the plant manager is about the type of loom needed to process each fabric during the coming 12 weeks to meet demands for the three fabrics and not exceed the capacity of the looms in the mill.Two types of looms are used: Jaquard and Northrop.Jaquard looms can be used to make all fabrics and are the only looms that can weave certain fabrics, such as plaids.Demands, variable costs for each fabric, and production rates on the looms are given in the table below.The mill has 10 Northrop looms and 2 Jaquard looms.Any fabrics that cannot be woven in the mill because of limited capacity will be purchased from an external supplier, finished at the mill, and sold at the selling price.In addition to determining which looms to use to process the fabrics, the manager also needs to determine which fabrics to buy externally.

Answer the following questions using a linear optimization model.
-According to the model, what is the total amount of Fabric 1 to be purchased?

• A)27,420.8
• B)50,000
• C)22,579.2
• D)32,595

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Definitions:

Edgeworth Box

Diagram showing all possible allocations of either two goods between two people or of two inputs between two production processes.

Initial Allocation

The distribution of resources or goods at the start of a process or period.

Shaded Area

A graphical representation used in economics and statistics to illustrate various economic concepts, such as surplus, deficit, and areas under a curve.

Partial Equilibrium Analysis

An economic analysis approach focusing on the equilibrium of a single market or sector without considering the interactions with other markets.