Figure 20-4 Montgomery Company Produces a and B with Contribution

question 5

Multiple Choice

Figure 20-4 Montgomery Company produces A and B with contribution margins per unit of $40 and $30, respectively. Only 500 labor hours and 300 machine hours are available for production.
Time requirements to produce one unit of A and B are as follows:
Refer to Figure 20-4. What is the objective function to maximize profits for Montgomery Company?

• A) Minimize 6A + 3B
• B) Maximize 2A + 5B
• C) Minimize 40A + 30B
• D) Maximize 40A + 30B

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Definitions:

Fraudulent Misrepresentation

A false statement made knowingly or recklessly to induce another party to enter into a contract, resulting in harm or loss.

Reliance

The act of depending on or trusting something or someone.

Legal Assent

The express or implied agreement to the terms of a contract, demonstrating a mutual understanding and intention to be bound by those terms.

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Institutions established by governmental entities to settle disputes through a legal process by applying laws and issuing decisions, rulings, or judgments.