A Company Sells Two Products with Information as Follows

question 79

Multiple Choice

A company sells two products with information as follows: Products are made by machine. 4 units of Product A can be made with one machine hour and 2 units of Product B can be made with one machine hour. The company has a maximum of 3,000 machine hours available per month. Assume there are no constraints on sales of either product, and the company could choose any product mix they wish. What is the maximum amount of contribution margin that the company could earn in a month?

• A)$16,000
• B)$18,000
• C)$48,000
• D)$22,000

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Definitions:

Positive Reinforcement

A technique in behavior modification that involves the addition of a reinforcing stimulus following a desired behavior, encouraging its recurrence.

Time-out

A behavioral intervention technique where an individual is temporarily removed from a reinforcing environment to decrease unwanted behaviors.

Appropriate Behavior

Behavior considered suitable or proper in a given context according to societal or specified standards.

Response Cost Lottery

A technique in which every student has an envelope taped to his or her desk. The teacher places five or more tickets in each envelope with the student’s name written on each ticket. Students lose a ticket every time they engage in one of three inappropriate behaviors specified by the teacher. At the end of a prespecified time, the remaining tickets are placed in a grab bag and mixed up. The teacher draws three or four tickets, and the students whose names appear on the tickets win a reward.