Harrington Corporation Produces Three Products, A, B, and C

question 55

Multiple Choice

Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows:There are 150 direct labor hours available. Machine-hour capacity allows 100 anchor bolts, only; 50 bearings, only; 40 casters, only; or any combination of the three that does not exceed the capacity.
The machine-hour constraint for Harrington's linear programming model is:

• A) The same as the labor-hour constraint.
• B) A + 2B + 2.5C ≤ 100.
• C) Indeterminable from the data given.
• D) A + B + C ≤ 190.
• E) 100A + 50B + 40C ≤ 19,000.

---

Definitions:

Beta

Beta measures the tendency of a security's returns to respond to swings in the market, providing insight into its relative risk.

Dividend Growth Rate

The dividend growth rate is the annual percentage rate at which a company's dividend payments to shareholders increase over time.

SML

The Security Market Line (SML) is a line that represents the risk-return relationship of the market at a given time, as described in the Capital Asset Pricing Model (CAPM).

T-Bill Rate

The T-Bill rate is the yield on U.S. Treasury bills, a benchmark for short-term interest rates in the United States.