Locken Products Inc

question 65

Multiple Choice

Locken Products Inc.makes two products-Q96T and T62D.Product Q96T's selling price is $48.00 and its unit variable cost is $33.60.Product T62D's selling price is $190.00 and its unit variable cost is $152.00.The monthly demand is 3, 340 units for product Q96T and 730 units for T62D.The constrained resource is a particular machine that is available for 10, 400 minutes each month.Each unit of product Q96T requires 2 minutes on this machine and each unit of product T62D requires 10 minutes on this machine. How many units of product T62D should be produced each month?

• A)0
• B)372
• C)730
• D)1, 398

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Definitions:

Minutes

measurement unit of time equal to 1/60th of an hour or 60 seconds.

Arrives

The act of reaching a destination or coming into presence at a specific place or time.

Mixed Numbers

A number consisting of an integer and a fraction, such as 3 1/2, used to represent quantities that exceed whole numbers.

Lowest Terms

Refers to a fraction that is simplified to its smallest possible numerator and denominator without changing its value.