10) The Engine Testing Organization tests engines before they are sold to manufacturers. The available machine-hours are limited and they are released as follows:
Use of Capacity in Hours per Unit of Product
Daily Maximum Production in Units
Department
Available Daily Capacity in Hours
Truck Engine
Airplane Engine
Assembly
500 machine-
hours
3.0 machine-
6.0 machine-
Testing
140 testing-
1 machine-
hour
0.5 machine-
Required:
Compute the daily maximum production in units for the truck engine and the airplane engine in units that the assembly department can make if it works exclusively on truck engines, and airplane engines, respectively. Next, compute the daily maximum testing production in units for the truck engine and the airplane engine if the testing department works exclusively on each.
11) The manager at the Engine Testing Organization reported the following information:
Department Capacity (per day) in Production Units
Selling Price
Variable Cost per Unit
Contribution Margin per unit
Only truck engines
167
83
$900
$660
$340
Only airplane engines
140
280
$1,100
$725
$475
What is the linear function expressing the objective for the total contribution margin (TCM)?
A)TCM =400S + 220B
B)TCM =220S + 340B
C)TCM =$900S + $1,100B
D)TCM =$660S + $725B
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here