The Same Constrained Resource Is Used by Four Different Products

question 45

Multiple Choice

The same constrained resource is used by four different products at Hinchcliffe Corporation.Data concerning those products appear below: The company does not have enough of the constrained resource to satisfy for demand of all four products. If salespersons are paid commissions that are a set percentage of sales, which product would they prefer to sell? In other words, if it is a choice between selling one unit of one product and one unit of another, which product would they prefer to sell?

• A)I100
• B)I200
• C)I300
• D)I400

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Definitions:

Machines

are mechanical or electronic devices that perform tasks, either automatically or with human input.

Short-Run Total Cost

The total of all costs, both fixed and variable, involved in the production of goods or services in the short run.

Production Function

This concept describes the relationship between inputs used in production and the resulting output.

Labor

The human effort, whether physical or mental, that is used in the production of goods and services.