Exhibit 8.1 The Following Questions Pertain to the Problem and Spreadsheet Below

question 24

Multiple Choice

Exhibit 8.1
The following questions pertain to the problem and spreadsheet below.
A company makes products A and B from 2 resources, labor and material. The company wants to determine the selling price which will maximize profits. A unit of A costs 25 to make and demand is estimated to be 20 − .10 * Price of A. A unit of B costs 18 to make and demand is estimated to be 30 − .07 * Price of B. The utilization of labor and materials and the available quantity of resources is shown in the table. A reasonable price for the products is between 100 and 200. Let X₁ = demand for As and X₂ = demand for Bs.
Let P₁ = price for As and P₂ = price for Bs
-Refer to Exhibit 8.1. What formula is used in cell B9 of the spreadsheet for this problem?

• A) =B3*B7+C3*C7
• B) =B5*B7+C5*C7
• C) =(B5-B4)*B7+(C5-C4)*B7
• D) =B3*B7+C3*B7+B4*B7+C4*B7

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Definitions:

Stable Internal

Characteristics or attributes within an individual that are consistent and reliable over time.

Stable External

Refers to external conditions or factors that remain consistent and unchanging over time, affecting individuals or environments in a predictable manner.

Internal Attribution

The process of explaining one's own behavior or the behavior of others by attributing causes to internal characteristics or dispositions.

Noncausal Attribution

The assignment of a cause to an event or behavior without evidence of a direct cause-and-effect relationship.