The Wiethoff Company Has a Contract to Produce 10,000 Garden

question 86

Multiple Choice

The Wiethoff Company has a contract to produce 10,000 garden hoses for a customer. Wiethoff has four different machines that can produce this kind of hose. Because these machines are from different manufacturers and use differing technologies, their specifications are not the same.
$$\begin{array} { c c c c } \text { Machine } & \begin{array} { c } \text { Fixed Cost to Setup } \\\text { Production Run }\end{array} & \begin{array} { c } \text { Variable } \\\text { Cost per Hose }\end{array} & \text { Capacity } \\\hline 1 & 750 & 1.25 & 6000 \\2 & 500 & 1.50 & 7500 \\3 & 1000 & 1.00 & 4000 \\4 & 300 & 2.00 & 5000 \\\hline\end{array}$$
-Write the constraint for machine 4.

• A) Y4 = 23
• B) Y4 ? 300
• C) X4 ? 5000
• D) X4 -300Y1 ? 0

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Definitions:

Gross Profits

The difference between revenue and the cost of goods sold (COGS), indicating how much a company earns after subtracting the costs associated with making and selling its products or services.

Payoff Table

A table that shows the potential outcomes and corresponding payoffs for each decision under different states or scenarios.

Environmentally Safe Material

Substances or materials that do not cause harm to the environment, including humans, wildlife, and plants.

Expected Payoff

The average return or outcome expected for a given investment or decision under uncertainty.