A Company Makes Two Types of Telephone Answering Machines: the Standard

question 79

Multiple Choice

A company makes two types of telephone answering machines: the standard model and the deluxe model. Each machine passes through three processes: $P _ { 1 } ,$ $P _ { 2 }$ and $P _ { 3 }.$ One standard answering machine requires 1 hour in $P _ { 1 } ,$ 4 hours in $P _ { 2 },$ and 3 hours in $P _ { 3 }.$ One deluxe answering machine requires 3 hours in $P _ { 1 } ,$ 5 hours in $P _ { 2 },$ and 1 hour in $P _ { 3 }.$ Because of employee work schedules, $P _ { 1 }$ is available for 24 hours, $P _ { 2 }$ is available for 47 hours, and $P _ { 3 }$ is available for 27 hours. If the profit is $22 for each standard model and $23 for each deluxe model, how many units of each type should the company produce to maximize profit?

• A)8 standard models and 3 deluxe models
• B)9 standard models and 0 deluxe models
• C)8 standard models and 0 deluxe models
• D)0 standard models and 8 deluxe models
• E)3 standard models and 7 deluxe models

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Definitions:

Urban Settings

Refers to areas characterized by high population density, infrastructure development, and a predominance of non-agricultural activities, such as cities or towns.

Chicago School

A school of economic thought associated with the University of Chicago, known for its strong belief in free-market capitalism and minimal government intervention in the economy.

Demographic Transition

The demographic transition is a theory describing the transition from high birth and death rates to lower birth and death rates as a country develops from a pre-industrial to an industrialized economic system.

Evidence Supports

When empirical data or factual information validates or backs up a hypothesis, claim, or theory.