A Company Will Be Able to Obtain a Quantity Discount

question 69

Multiple Choice

A company will be able to obtain a quantity discount on component parts for its three products,X₁,X₂ and X₃ if it produces beyond certain limits.To get the X₁ discount it must produce more than 50 X₁'s.It must produce more than 60 X₂'s for the X₂ discount and 70 X₃'s for the X₃ discount.Which of the following pair of constraints enforces the quantity discount relationship on X₃?

• A)X₃₁ ≤ M₃Y₃,X₃₂ ≥ 50Y₃
• B)X₃₁ ≤ M₃Y₃,X₃₁ ≥ 50
• C)X₃₂ ≥ 1/50)X₃₁,X₃₁ ≤ 50
• D)X₃₂ ≤ M₃Y₃,X₃₁ ≥ 50Y₃

---

Definitions:

Reseller Market

A market segment where businesses purchase products with the intention of selling them to end consumers without significant modification.

Retailers

Businesses or individuals that sell goods directly to consumers for personal use, rather than for resale or wholesale.

Wholesalers

Entities engaged in selling goods in large quantities to retailers, other merchants, or industrial, institutional, and commercial users.

North American Industry Classification System

A classification system that categorizes businesses into detailed sectors and industries, primarily to facilitate economic data analysis and reporting.