Solve the Problem $\$ 40$ And on an SST Ring Is $\$ 35$

question 348

Multiple Choice

Solve the problem.
-The Acme Class Ring Company designs and sells two types of rings: the VIP and the SST. They can produce up to 24 rings each day using up to 60 total man-hours of labor. It takes 3 man-hours to make one VIP ring and 2 man-hours to make one SST ring. How many of each type of ring should be made daily to maximize the company's profit, if the profit on a VIP ring is $\$ 40$ and on an SST ring is $\$ 35$ ?

• A) 14 VIP and 10 SST
• B) \(18 \mathrm { VIP }\) and \(6 \mathrm { SST }\)
• C) 16 VIP and 8 SST
• D) \(12 \mathrm { VIP }\) and 12 SST

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Definitions:

Measurement Date

The specific date at which the values of assets and liabilities are determined in the preparation of financial statements.

Stock Appreciation Rights

A type of employee compensation linked to the increase in the company's stock price over a set period, allowing employees to profit from the appreciation without owning the stock.

Compensation Expense

The total cost incurred by a business for the payment of salaries, wages, benefits, and other forms of compensation to employees.

Options Pricing Model

A mathematical model used to determine the theoretical value of options, taking into account factors like the stock price, strike price, and volatility.