Company TKK Corporation, a Large Conglomerate, Has Three Subsidiaries Engaged

question 217

Multiple Choice

Company TKK Corporation, a large conglomerate, has three subsidiaries engaged in producing raw rubber, manufacturing tires, and manufacturing other rubber-based goods. The production of 1 unit of raw rubber requires the consumption of 0.08 unit of rubber, 0.05 unit of tires, and 0.02 unit of other rubber-based goods. To produce 1 unit of tires requires 0.5 unit of raw rubber, 0.09 unit of tires, and 0 units of other rubber-based goods. To produce 1 unit of other rubber-based goods requires 0.2 unit of raw rubber, 0.01 unit of tires, and 0.07 unit of other rubber-based goods. Market research indicates that the demand for the following year will be $400 million for raw rubber, $800 million for tires, and $180 million for other rubber-based products. Suppose the demand for raw rubber increases by 10%, the demand for tires increases by 20%, and the demand for other rubber-based products decreases by 10%. Find the level of production for each subsidiary in order to satisfy this demand. Round the answers to the nearest tenth, if necessary. ​

• A) $198.5 million worth of raw rubber
• $1,129.7 million worth of tires
• $1,119.2 million worth of other rubber-based goods
• B) $1,119.2 million worth of raw rubber
• $1,129.7 million worth of tires
• $198.5 million worth of other rubber-based goods
• C) $689.7 million worth of raw rubber
• $159.2 million worth of tires
• $36)5 million worth of other rubber-based goods
• D) $440 million worth of raw rubber
• $960 million worth of tires
• $162 million worth of other rubber-based goods
• E) $1,138.6 million worth of raw rubber
• $1,120.1 million worth of tires
• $237.4 million worth of other rubber-based goods

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Definitions:

Overinterpretation

The tendency to assign too much meaning or significance to events, often beyond what is justified by the actual information available.

Free Association Linkage

A psychoanalytic technique where clients verbalize all thoughts that come to mind without censorship or filtering, revealing unconscious thoughts and feelings.

Psychodynamic Therapies

Psychological treatments that focus on understanding and resolving underlying unconscious conflicts, emotions, and motivations within individuals.

Distressing Thoughts

Unpleasant and upsetting ideas or mental images that persistently plague the mind.