A Company Sells Two Products with Information as Follows The Products Are Machine Made

question 191

Multiple Choice

A company sells two products with information as follows: $$\begin{array} { | l | c | c | } \hline & \mathrm { A } & \mathrm { B } \\\hline \text { Sales price per unit } & \$ 12.00 & \$ 26.00 \\\hline \text { Variable cost per unit } & \$ 10.00 & \$ 12.00 \\\hline\end{array}$$ The products are machine made.Four units of product A can be made with one machine hour and two units of product B can be made with one machine hour.The company has a maximum of 6000 machine hours available per month.The company can sell up to 18,000 units of product A per month,and up to 3000 units of product B for the month.What is the optimum product mix to maximize the company's operating income?

• A) 1500 units of A and 78,000 units of B
• B) 18,000 units of A and 3000 units of B
• C) zero units of A and 3000 units of B
• D) 36,000 units of A and zero units of B

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Definitions:

Mental Set

A framework or mindset that shapes an individual's approach to problem-solving and can sometimes limit the exploration of alternative solutions.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, associated with decision making, cognitive behavior, and personality expression.

Problem Structuring

Involves identifying the key elements and relationships in a problem to better understand and address it.

Knowledge Base

A centralized repository of information, often used in computing to support problem solving and decision making.