Computer Products Produces Two Keyboards,Regular and Special B)Maximize $\quad \$ 128 R + \$ 720 S$

question 198

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)\(\begin{array}{ll}
• \text { Maxindze: }&\$ 128 \mathrm{R}+5720 \mathrm{~S}\\
• \text { Conslrainls: }\\\text { Labor-hours: } & 20 R+31 S \leq 1,600 \\
• \text { Machane-hours: } & 8 R+20 S \leq 1,200 \\
• \text { Special: } & S \leq 80 \\
• & S \geq 0 \\
• \text { Regular: } & R \geq 0
• \end{array}\)
• B)Maximize: \(\quad \$ 128 R + \$ 720 S\)
• Constraints:
• Labor-hours: \(\quad 20 \mathrm { R } + 34 \mathrm {~S} \geq 1,600\)
• Machine-hours: \(\quad 8 R + 20 S \geq 1,200\)
• Special: \(\quad S \geq 80\)
• \(\quad\quad\quad\quad S \geq 0\)
• Regular: \(\quad \mathrm { R } \geq 0\)
• C)\(\begin{array}{ll}
• \text { Maximize: } & \$ 720 \mathrm{~S}+\$ 128 \mathrm{R} \\
• \text { Constraints: } & \\
• \text { Labor-hours: } & 20 \mathrm{R}+8 \mathrm{~S} \leq 1,600 \\
• \text { Machine-hours: } & 34 \mathrm{R}+20 \mathrm{~S} \leq 1,200 \\
• \text { Special: } & \mathrm{S} \leq 80 \\
• & \mathrm{~S} \geq 0 \\
• \text { Regular: } & \mathrm{R} \geq 0
• \end{array}\)
• D)\(\begin{array}{ll}
• \text { Maximize: } & \$ 128 \mathrm{R}+\$ 720 \mathrm{~S} \\
• \text { Constraints: } & \\
• \text { Labor-hours: } & 20 \mathrm{R}+34 \mathrm{~S} \leq 1,600 \\
• \text { Machine-hours: } & 8 \mathrm{R}+20 \mathrm{~S} \leq 1,200 \\
• \text { Special: } & \mathrm{S} \geq 80 \\
• & \mathrm{~S} \leq 0 \\
• \text { Regular: } & \mathrm{R} \leq 0
• \end{array}\)

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Definitions:

Retained Earnings

The portion of a company's profits that is held or retained and not distributed as dividends to shareholders, often reinvested in the business or used to pay off debt.

Cash Inflow

The total amount of money being transferred into a business, often from operations, investments, or financing.

Issue Common Shares

The process by which a corporation sells new shares to investors to raise capital.

Ceases Operations

The process when a business stops its principal business activities and ends its operations.