Wakeman Products Inc

question 23

Multiple Choice

Wakeman Products Inc. makes two products-W28H and Z28D. Product W28H's selling price is $27.00 and its unit variable cost is $21.60. Product Z28D's selling price is $170.00 and its unit variable cost is $153.00. The monthly demand is 2,030 units for product W28H and 730 units for Z28D. The constrained resource is a particular machine that is available for 9,500 minutes each month. Each unit of product W28H requires 3 minutes on this machine and each unit of product Z28D 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) $17.00 per minute
• B) $1.70 per minute
• C) $1.80 per minute
• D) $5.40 per minute

---

Definitions:

Tertiary Circular Reactions

The exploratory behaviors observed in infants from about 12 to 18 months of age, characterized by the purposeful adaptation of established schemas to new situations.

Assimilation

The cognitive process of integrating new information into existing cognitive structures and beliefs.

Accommodation

The process by which the eye's lens changes shape to focus near or far objects on the retina or can also refer to adjustments made in beliefs or behavior in response to new information or experiences.

Schematic Restructuring

A cognitive process involving the reorganization or modification of mental structures to incorporate new information or experiences.