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Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows: Product Selling Price per Unit Variable Cost per
Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows:
Product | Selling Price per Unit | Variable Cost per Unit | Fixed Cost per Unit | DL Hours per Unit | ||||||||||||||||||
A | $ | 4.00 | $ | 1.00 | $ | 2.00 | 2 | |||||||||||||||
B | $ | 3.50 | $ | 0.50 | $ | 2.00 | 2 | |||||||||||||||
C | $ | 6.00 | $ | 2.00 | $ | 3.00 | 3 | |||||||||||||||
The objective function for a linear program to maximize contribution margin from the set of three products is:
Multiple Choice
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Z = A + B + C.
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Z = $3A + $3B + $4C.
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Z = A + $0.50B + $2C.
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Z = $3A + $2.50B + $5C.
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Z = $4A + $3.50B + $6C.
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