Skiing Accessories Has 3,000 Machine Hours of Plant Capacity Available

question 10

Essay

Skiing Accessories has 3,000 machine hours of plant capacity available for manufacturing sun goggles. Following is information about these products:
Premium Regular
Selling price per unit $50 $30
Variable cost per unit $35 $10
Units that can be manufactured per machine
hour on the same production line 8 5
Estimated demand 12,000 goggles 21,000 goggles
a)How many machine hours should be devoted to the manufacture of each product?
b)What is the maximum amount that Skiing Accessories would be willing to spend to increase capacity?

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Definitions:

Sufficient Condition

A condition or set of conditions that, if met, guarantees a certain outcome or result.

Content Validity Ratio

A statistical measure used to evaluate the extent to which a test or assessment accurately covers the content it is intended to measure.

Construct Being Measured

The specific psychological trait, ability, or characteristic that an assessment or test is designed to evaluate.

Convergent Validity

A form of validity whereby scores on a test are compared to scores obtained on other tests believed to measure the same construct.