An Electronics Firm Produces Two Models of Pocket Calculators: the A-100

question 97

Multiple Choice

An electronics firm produces two models of pocket calculators: the A-100 (A) , which is an inexpensive four-function calculator, and the B-200 (B) , which also features square root and percent functions. Each model uses one (the same) circuit board, of which there are only 2,500 available for this week's production. Also, the company has allocated a maximum of 800 hours of assembly time this week for producing these calculators, of which the A-100 requires 15 minutes (.25 hours) each, and the B-200 requires 30 minutes (.5 hours) each to produce. The firm forecasts that it could sell a maximum of 4,000 A-100s this week and a maximum of 1,000 B-200s. Profits for the A-100 are $1.00 each, and profits for the B-200 are $4.00 each. What is the objective function?

• A)$4.00 A + $1.00 B = Z
• B)$.25 A + $1.00 B = Z
• C)$1.00 A + $4.00 B = Z
• D)$1.00 A + $1.00 B = Z
• E)$.25 A + $.50 B = Z

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Definitions:

Materials A

A designation for a group of raw materials or components used in the manufacturing process of a product.

Pounds

A unit of weight commonly used in the United Kingdom and other countries that are part of the Imperial system; also refers to the British currency (GBP).

Sales Revenue

The total amount of money generated from selling goods or services before any expenses are deducted.

Sales Commissions

A portion of sales revenue that is paid to sales employees or agents as a reward for the sales they make.