Examlex

Solved

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

question 46

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 objective function?


Definitions:

Net Income

The income that remains in a business after all costs and expenses have been subtracted from total revenue, indicative of the financial performance.

Cash Flow Hedge

A financial instrument intended to offset potential losses or gains that could be incurred by future cash flows, acting as a buffer against currency, interest rate, or commodity price changes.

Forward Exchange Contract

A financial derivative that locks in the exchange rate at which a currency can be bought or sold on a future date.

Fair Value Hedge

A hedge of the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment, or an identified portion of such an asset, liability, or firm commitment, that is attributable to a particular risk and could affect profit or loss.

Related Questions