Hoop Corporation Has Four Different Products That Use the Same

question 53

Multiple Choice

Hoop Corporation has four different products that use the same constrained resource. Data concerning those products appear below: $\begin{array}{lrrrr}&\mathrm{H} 100 & \mathrm{H} 200 & \mathrm{H} 300 & \mathrm{H} 400 \\\text { Unit selling price}&\$ 35.50 & \$ 29.10 & \$ 14.70 & \$ 36.20 \\\text {Unit variable cost }&\$ 15.30 & \$ 7.60 & \$ 3.80 & \$ 23.20 \\\text {Amount of the constrained resource required. }&0.46 & 0.34 & 0.25 & 0.51\end{array}$ The company does not have enough of the constrained resource to satisfy for demand of all four products. From the standpoint of the entire company, if it is a choice between sales of one unit of one product versus another, which product should the salespersons emphasize?

• A)H100
• B)H400
• C)H300
• D)H200

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Definitions:

Insulator

A material or device that resists the flow of electric current, used to prevent undesired current flow.

Cooling

The process of removing heat from an object or space, often to maintain a desired temperature.

Phase Current

The electric current flowing through one phase of a multi-phase system, like in three-phase electrical systems.

Resistive Load

A type of electrical load in which the current flowing through it is directly proportional to the voltage across it, in accordance with Ohm's law.