Computer Products Produces Two Keyboards,Regular and Special

question 102

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.

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Definitions:

Production Possibilities Curve

A graphical representation showing the maximum number of goods and services that can be produced using limited resources.

President Of The United States

The head of state and head of government of the United States, responsible for enforcing federal laws and serving as the commander-in-chief of the armed forces.

Economists

Professionals who study the production, distribution, and consumption of goods and services, focusing on how individuals, groups, and societies use their resources to meet their needs and wants.

Production Possibilities Frontier

An outline that conveys the peak output possibilities for two products, relying on a compilation of inputs that incorporate resources and other factors.