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:

Artery

A blood vessel that carries oxygen-rich blood away from the heart to various parts of the body.

Coronary Angioplasty

A medical procedure used to open clogged heart arteries by inflating a balloon inside the artery.

Lung Cancer

A disease characterized by the uncontrolled growth of abnormal cells in one or both lungs, often attributed to smoking tobacco and exposure to certain toxins.

Cancer Death

The loss of life due to cancer, a group of diseases characterized by the uncontrolled division of abnormal cells.