Gorey Products Inc

question 58

Multiple Choice

Gorey Products Inc. makes two products—K36L and W81H. Product K36L's selling price is $345.00 and its unit variable cost is $310.50. Product W81H's selling price is $256.00 and its unit variable cost is $230.40. The monthly demand is 430 units for product K36L and 890 units for W81H. The constrained resource is a particular machine that is available for 10,000 minutes each month. Each unit of product K36L requires 15 minutes on this machine and each unit of product W81H requires 8 minutes on this machine.
-How many units of product K36L should be produced each month?

• A)192
• B)430
• C)905
• D)0

---

Definitions:

Expansionary Monetary

Refers to a policy aimed at increasing the money supply in order to stimulate economic activity, typically adopted by a central bank to foster economic growth.

Natural Rate

The natural rate often refers to the natural rate of unemployment, which is the level of unemployment consistent with sustainable economic growth, not accelerated by inflation.

Unexpectedly High

A level or measure that exceeds what was anticipated or forecasted.