Whitacre Products Inc

question 69

Multiple Choice

Whitacre Products Inc. makes two products—P32W and I90J. Product P32W's selling price is $44.00 and its unit variable cost is $26.40. Product I90J's selling price is $220.00 and its unit variable cost is $198.00. The monthly demand is 3,500 units for product P32W and 760 units for I90J. The constrained resource is a particular machine that is available for 9,800 minutes each month. Each unit of product P32W requires 2 minutes on this machine and each unit of product I90J requires 10 minutes on this machine.
-Up to how much should the company be willing to pay to obtain enough of the constrained resource to satisfy demand for the two existing products?

• A)$22.00 per minute
• B)$2.20 per minute
• C)$17.60 per minute
• D)$8.80 per minute

Recognize the Hawthorne effect and its implications on human behavior in organizations.

Identify important skills and competencies for managerial success in the government sector.

Understand the principles of positive organizational scholarship and its focus on employee strengths.

Understand different worldviews regarding the use and conservation of resources.

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Definitions:

Communicated Acceptance

The act of conveying agreement to the terms of an offer, completing the formation of a contract.

Similar Relations

Associations or connections between entities or concepts that share common characteristics or attributes.

Period of Time

A specific duration or span of time during which events occur or conditions are planned to take place.

Revoke Offer

The withdrawal of a proposal by the offeror before it has been accepted by the offeree, rendering the offer void.