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

question 7

Multiple Choice

An electronics firm produces two models of pocket calculators: the A-100 (A) and the B-200 (B) . Each model uses one circuit board, of which there are only 2,500 available for this week's production. In addition, the company has allocated a maximum of 800 hours of assembly time this week for producing these calculators. Each A-100 requires 15 minutes to produce while each B-200 requires 30 minutes to produce. The firm forecasts that it could sell a maximum of 4,000 of the 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.
-What is the weekly profit when producing the optimal amounts?

• A)$10,000.
• B)$4,600.
• C)$2,500.
• D)$5,200.
• E)$6,400.

---

Definitions:

Research Costs

Expenses associated with conducting research activities, often including but not limited to, development, testing, and innovation costs.

Depreciation

A method of allocating the cost of a tangible asset over its useful life.

Comparative Income Statement

A financial statement that compares income, expenses, and net income over different periods, helping to identify trends and assess performance.