Computer Products Produces Two Keyboards, Regular and Special

question 63

Multiple Choice

Computer Products produces two keyboards, Regular and Special. Regular keyboards have a unit contribution margin of $128, and Special keyboards have a unit contribution margin of $720. The demand for Regulars exceeds Computer Product's production capacity, which is limited by available machine-hours and direct manufacturing labor-hours. The maximum demand for Special keyboards is 80 per month. Management desires a product mix that will maximize the contribution toward fixed costs and profits. Direct manufacturing labor is limited to 1,600 hours a month and machine-hours are limited to 1,200 a month. The Regular keyboards require 20 hours of labor and 8 machine-hours. Special keyboards require 34 labor-hours and 20 machine-hours.
Let R represent Regular keyboards and S represent Special keyboards. The correct set of equations for the keyboard production process is:

• A) Maximize: $128R + $720S
• Constraints:
• Labor-hours: 20R + 34S ≤ 1,600
• Machine-hours: 8R + 20S ≤ 1,200
• Special: S ≤ 80
• S ≥ 0
• Regular: R ≥ 0
• B) Maximize: $128R + $720S
• Constraints:
• Labor-hours: 20R + 34S ≥ 1,600
• Machine-hours: 8R + 20S ≥≤ 1,200
• Special: S ≥ 80
• S ≥ 0
• Regular: R ≥ 0
• C) Maximize: $720S + $128R
• Constraints:
• Labor-hours: 20R + 8S ≤ 1,600
• Machine-hours: 34R + 20S ≤ 1,200
• Special: S ≤ 80
• S ≥ 0
• Regular: R ≥ 0
• D) Maximize: $128R + $720S
• Constraints:
• Labor-hours: 20R + 34S ≤ 1,600
• Machine-hours: 8R + 20S ≤ 1,200
• Special: S ≥ 80
• S ≤ 0
• Regular: R ≤ 0

---

Definitions:

Cultural Conflicts

Disagreements or discord arising from differences in cultural values, beliefs, or practices between groups or individuals.

Family Expectations

Refers to the set of standards or beliefs held by family members that dictate how individuals should behave, achieve, and conduct themselves within and outside the family.

Generational Expectations

The societal beliefs and norms about the behaviors, values, and roles considered appropriate for individuals of specific age groups within a family or community lineage.

Cross-Cultural

Pertains to a comparative study or exploration of different cultures to understand their differences and similarities.