Alpha Company Produces Two Models of a Component: Model K-3

question 47

Multiple Choice

Alpha Company produces two models of a component: Model K-3 and Model P-4. The unit contribution margin for Model K-3 is $6, and the unit contribution margin for Model P-4 is $14. Each model must spend time on a special machine. The firm owns two machines that together provide 4,000 hours of machine time per year. Model K-3 requires 15 minutes of machine time; Model P-4 requires 30 minutes of machine time.
-Refer to the Figure.Suppose Alpha Company can sell only 5,500 units of each model.How many units of Model P-4 should be produced?

• A)1,375
• B)2,750
• C)5,000
• D)5,500

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Definitions:

Person-To-Person

Direct interaction or communication between individuals without intermediaries.

Communicate

The act of transferring information from one place, person, or group to another, effectively sharing ideas, feelings, or instructions.

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The reasons or objectives behind forming and maintaining friendships, often related to social support, companionship, and shared interests.

Task Purposes

The specific objectives or goals that a particular task aims to achieve, defining the task's direction and expected outcome.