Suzy Co Produces and Sells Three Products (X, Y, and Z)

question 12

Multiple Choice

Suzy Co. produces and sells three products (X, Y, and Z) . The following data relate to the three products: $\begin{array}{lrrrrr}&X&Y&Z\\\text { Demand in units } & 160 & 150 & 140 \\\text { Selling price per unit } & \$ 130 & \$ 160 & \$ 150 \\\text { Raw materials costs per unit } & \$ 65 & \$ 80 & \$ 90 \\\text { Labor time in minutes per unit } & 10 & 20 & 10\end{array}$ Which is the most profitable product if there is a constraint on labor time, so that total demand for all products cannot be met?

• A) Product X.
• B) Product Y.
• C) Product Z.
• D) More than one of the products has equal total throughput margin per labor minute.
• E) There isn't enough information to answer the question.

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Definitions:

Classical Conditioning

A teaching process in which two stimuli are repetitively paired; a response first initiated by the second stimulus eventually becomes initiated by the first stimulus alone.

Tone

In linguistics, the quality of a sound, especially in speech, that expresses a particular meaning or emotion; in music, the specific quality or pitch of a sound.

Airpuff

A burst of air directed towards a specific target, often used in psychological experiments to study blink reflexes or other sensory responses.

Extinction

In the field of behavioral psychology, the phenomenon where a learned response gradually becomes less frequent and ultimately vanishes because the previously associated stimulus is not presented alongside the original, unconditioned stimulus anymore.