An Electronics Firm Produces Two Models of Pocket Calculators: the A-100

question 73

Multiple Choice

An electronics firm produces two models of pocket calculators: the A-100 (A) and the B-200 (B) . Each model uses one circuit board, of which there are only 2,500 available for this week's production. In addition, the company has allocated a maximum of 800 hours of assembly time this week for producing these calculators. Each A-100 requires 15 minutes to produce while each B-200 requires 30 minutes to produce. The firm forecasts that it could sell a maximum of 4,000 of the A-100s this week and a maximum of 1,000 B-200s. Profits for the A-100 are $1.00 each and profits for the B-200 are $4.00 each. The firm's goal is to maximize profits.
What is the objective function?

• A) P = 4A + 1B
• B) P = 0.25A + 1B
• C) P = 1A + 4B
• D) P = 1A + 1B
• E) P = 0.25A + 0.5B

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Definitions:

Germany

A country in Central Europe known for its rich history, cultural heritage, and significant economic contributions.

Equilibrium Exchange Rate

The equilibrium exchange rate is the price at which the demand for a currency exactly matches its supply in the foreign exchange market, leading to balance without the need for official intervention.

South Korean Won

The official currency of South Korea, used as a medium of exchange within the country.

Appreciated in Value

An increase in the worth of an asset or currency over time.