XYZ Manufactures Four Types of Plywood Panels

question 68

Multiple Choice

XYZ manufactures four types of plywood panels.Each product must go through the following operations: patching,grading,gluing,and baking.The time requirements for each panel,the capacity available,the minimum production requirements,and the profit contributions per panel are tabled here.Identify the objective function.Let x1 = Number of soft panels to be made,x2 = Number of hardwood panels to be made,x3 = Number of tropical panel to be made,and x4 = Number of aircraft panels to be made.

• A)Maximize profits = 8X₁ + 12X₂ + 18X₃ + 30X₄
• B)Maximize profits = 7X₁ + 10X₂ + 15X₃ + 20X₄
• C)Minimize costs = 8X₁ + 12X₂ + 18X₃ + 30X₄
• D)Minimize costs = 7X1 + 10X2 + 15X3 + 20X4

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Expenses Closed

The process at the end of an accounting period where expense accounts are closed and their balances transferred to a summary account.

Owner's Capital

The amount of equity a business owner has invested in their firm or the net assets belonging to the owner.

Income Summary

An account used in the closing process that summarizes the revenues and expenses for a specified accounting period, facilitating the transfer of the net income or loss to owner's equity.