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

question 30

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. Which of the following is not a feasible production/sales combination?

• A)0 A and 0 B
• B)0 A and 1,000 B
• C)1,800 A and 700 B
• D)2,500 A and 0 B
• E)100 A and 1,600 B

---

Definitions:

SBA Programs

Initiatives and services offered by the Small Business Administration to support and assist small business development and growth in the United States.

Set-Aside Program

Component of a government contract specifying that certain government contracts (or portions of those contracts) are restricted to small businesses and/or to women- or minority-owned companies.

Government Contracts

are agreements entered between companies and government entities for the provision of goods and services.

Qualifying Small Businesses

Refers to small businesses that meet specific criteria set by government or financial entities to be eligible for benefits or incentives.