A Division of the Winston Furniture Company Manufactures Dining Tables

question 100

Multiple Choice

A division of the Winston Furniture Company manufactures dining tables and chairs. Each table requires 40 board feet of wood and 3 labor-hours. Each chair requires 16 board feet of wood and 4 labor-hours. The profit for each table is , and the profit for each chair is . In a certain week, the company has board feet of wood available and labor-hours available. How many tables and chairs should Winston manufactures to maximize its profit? What is the maximum profit?

• A) Winston should manufacture 40 tables and 100 chairs for a maximum Profit of .
• B) Winston should manufacture 46 tables and 100 chairs for a maximum Profit of .
• C) Winston should manufacture 40 tables and 106 chairs for a maximum Profit of .
• D) Winston should manufacture 40 tables and 100 chairs for a maximum Profit of .
• E) Winston should manufacture 46 tables and 100 chairs for a maximum Profit of .

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Definitions:

Forward Contract

A financial derivative contract between two parties to buy or sell an asset at a specified future date for a price agreed upon today.

Canadian Dollars

The currency of Canada, represented by the symbol CAD or C$.

Foreign Exchange Risk

The possibility of losing value due to changes in currency exchange rates.

Spot Rate

The current market price at which a particular asset, such as foreign currency, can be bought or sold for immediate delivery.