Computer Products Produces Two Keyboards, Regular and Special

question 132

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 Products' production capacity, which is limited by available machine-hours and direct manufacturing labour 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 labour 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 labour and 8 machine hours. Special keyboards require 34 labour hours and 20 machine hours. Select the appropriate linear programming objective and constraint functions designed to maximize Computer Products total contribution margin. Let R represent Regular keyboards and S represent Special keyboards.

---

Definitions:

Payment

A transfer of money or goods from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Article 3

Typically refers to a specific section within a larger document, like a constitution or treaty, where its contents vary depending on the document.

Depositary Bank

A financial institution that holds and manages the deposits of securities, facilitating the exchange and protection of securities certificates.

Indorsement

A legal term referring to the signing of a document, usually on its back, for the purpose of transferring rights to another individual.