A Manufacturer Produces Both Widgets and Gadgets

question 67

Multiple Choice

A manufacturer produces both widgets and gadgets. Widgets generate a profit of $50 each and gadgets have a profit margin of $35 each. To produce each item, a setup cost is incurred. This setup cost of $500 for widgets and $400 for gadgets. Widgets consume 4 units of raw material A and 5 units of raw material B. Gadgets consume 6 units of raw material A and 2 units of raw material B. Each day, the manufacturer has 500 units of each raw material available.
Set up the problem in Excel and find the optimal solution. What is the maximum profit possible?

• A) $3,500
• B) $4,500
• C) $5,500
• D) $6,500
• E) $7,500

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Definitions:

Simulation

The imitation of the operation of a real-world process or system over time, often used for training, analysis, or entertainment.

Unhealthy Competition

A competitive environment where the practices or intensity of rivalry lead to negative consequences for the participants or broader society.

Corporate Retreat

An offsite meeting or gathering designed to foster team building, strategic planning, and organizational development.

Training Method

Encompasses the techniques and approaches utilized to impart skills and knowledge during training activities, tailored to meet specific learning objectives.