Two Factories Produce Three Different Types of Kitchen Appliances

question 10

Multiple Choice

Two factories produce three different types of kitchen appliances. The following table summarizes the production capacities, the numbers of each type of appliance ordered, and the daily operating costs for the factories. How many days should each factory operate to fill the orders at minimum cost? Find the minimum cost. ​

• A) Minimum cost of $245,000 using 20 days at Factory 1 and 0 days at Factory 2.
• B) Minimum cost of $612,500 using 50 days at Factory 1 and 0 days at Factory 2.
• C) Minimum cost of $1,002,500 using 10 days at Factory 1 and 40 days at Factory 2.
• D) Minimum cost of $807,500 using 30 days at Factory 1 and 20 days at Factory 2.
• E) Minimum cost of $465,500 using 38 days at Factory 1 and 0 days at Factory 2.

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Definitions:

Canadian Company

A business entity that is registered, operates, or was founded in Canada.

Real Exchange Rate

The price of a country's goods and services compared to those of another country, adjusted for inflation.

Trade Restriction

Measures implemented by governments to control the amount of trade across their borders including tariffs, quotas, and bans.

Net Capital Outflow

The net balance resulting from domestic residents buying foreign assets and foreigners buying domestic assets.