The Constraint for Resource 1 Is 5 X₁ + 4

question 37

Multiple Choice

The constraint for resource 1 is 5 X₁ + 4 X₂ ≥ 200. If X₁ = 40 and X₂ = 20, how many additional units, if any, of resource 1 are employed above the minimum of 200?

• A) 0
• B) 20
• C) 40
• D) 80

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Definitions:

Production Budget

An estimate of the total cost of production, including direct materials, labor, and overheads, planned for a certain period.

Capital Expenditures Budget

A plan for a company's spending on long-term assets, such as buildings, equipment, and machinery, over a certain period.

Inventory Policy

Inventory policy refers to the set of guidelines or rules a company follows to manage its inventory levels, ordering, storage, and replenishment to meet customer demand efficiently.

Projected Sales

The estimated revenue that a company expects to generate from goods or services over a specific period.