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:

Joint Venture

A business arrangement in which two or more parties agree to pool resources for the purpose of accomplishing a specific task.

Partnership

A legal arrangement where two or more persons agree to share the profits of a business which they run together.

Malpractice

Failure of a professional to perform their duties to the required standard of care, resulting in harm to their client or patient.

Corporation

A legal entity recognized by law as separate from its owners, with rights to own property, sue or be sued, and conduct business.