Custom Furniture Manufactures a Small Table and a Large Table

question 143

Multiple Choice

Custom Furniture manufactures a small table and a large table. The small table sells for $900, has variable costs of $560 per table, and takes ten direct labor hours to manufacture. The large table sells for $1,500, has variable costs of $980, and takes eight direct labor hours to manufacture. The company has a maximum of 5,000 direct labor hours per month when operating at full capacity. If there are no constraints on sales of either product, and the company could choose any proportions of product mix that they wanted, what is the optimum product mix to maximize operating income of the company?

• A)400 units of small, 125 units of large
• B)zero units of small, 625 units of large
• C)100 units of small, 500 units of large
• D)500 units of small, zero units of large

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Definitions:

Heterozygous

Having two different alleles at a specific locus on a pair of homologous chromosomes, resulting in genetic variation.

Genetic Locus

A specific, fixed position on a chromosome where a particular gene or genetic marker is located.

X Chromosomes

One of the two sex chromosomes, present in both males (XY) and females (XX), that determine sexual differentiation in humans.

Phenylalanine Hydroxylase

An enzyme that converts phenylalanine into tyrosine, thus playing a crucial role in amino acid metabolism.