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

question 19

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 cost incurred by Remington for producing the three fabrics?

• A)$96,540.47
• B)$149,240.47
• C)$96,227.82
• D)$88,862.65

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Definitions:

Spending Variance

The difference between the actual amount of money spent and the budgeted or expected amount in cost accounting, often related to manufacturing costs.

Supplies Costs

The amount spent on obtaining various materials and goods necessary for the operation of a business.

Occupancy Expenses

Costs associated with occupying a physical space or property, including rent, utilities, property taxes, and maintenance costs.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for more accurate financial planning and analysis.