Prudence Corporation Manufactures Two Products: X and Y Which of the Following Is a Constraint Function of Prudence

question 34

Multiple Choice

Prudence Corporation manufactures two products: X and Y. The company has 4,000 hours of machine time available and can sell no more than 800 units of product X. Other pertinent data follow. $\begin{array}{lrr}&\text { Product X }&\text { Product Y }\\\text { Selling price } & \$ 8.00 & \$ 19.00 \\\text { Variable cost } & 3.00 & 5.00 \\\text { Fixed cost } & 3.50 & 6.25 \\\text { Machine time per unit } & 2 \text { hours } & 3 \text { hours }\end{array}$ Which of the following is a constraint function of Prudence?

• A) Maximize Z = 5X + 14Y.
• B) Minimize Z = 6.50X + 11.25Y.
• C) X ? 800.
• D) 2X ? 4,000; 3Y ? 4,000.
• E) 2X + 3Y ? 4,000.

---

Definitions:

Front-End Loads

Front-End Loads are fees paid by investors at the time of purchasing mutual fund shares, which reduce the amount of investment actually placed into the fund.

Back-End Loads

Fees paid by investors when selling mutual fund shares, often used to discourage quick or short-term trading.

Multiple Mutual

A term lacking a clear definition in standard financial parlance, potentially referring to strategies involving investments in various mutual funds. NO.

Net Asset Value

The total value of a fund's assets minus its liabilities, often used in relation to mutual funds or ETFs.