Figure 20-4 Montgomery Company Produces a and B with Contribution Margins Per

question 115

Multiple Choice

Figure 20-4
Montgomery Company produces A and B with contribution margins per unit of $40 and $30, respectively. Only 500 labor hours and 300 machine hours are available for production.
Time requirements to produce one unit of A and B are as follows:

-Refer to Figure 20-4. What is the objective function to maximize profits for Montgomery Company?

• A) Minimize 6A + 3B
• B) Maximize 2A + 5B
• C) Minimize 40A + 30B
• D) Maximize 40A + 30B

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Definitions:

Physiological Needs

Basic bodily requirements essential for survival, such as food, water, sleep, and shelter, as proposed in Maslow's hierarchy of needs.

Relationships

Bonds or connections between individuals or entities characterized by emotional or social interactions.

Esteem

A psychological term that reflects a person's overall subjective emotional evaluation of their own worth.

Self-worth

The sense of one's own value or worth as a person; self-esteem.