Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Lorax Computer Products produces two keyboards, Regular and Special. Regular keyboards have a unit contribution margin of 150, and Special keyboards have a unit

image text in transcribed
image text in transcribed
image text in transcribed
The Lorax Computer Products produces two keyboards, Regular and Special. Regular keyboards have a unit contribution margin of 150, and Special keyboards have a unit contribution margin of 750. The demand for Regulars exceeds Computer Products production capacity, which is limited by available machine-hours and direct manufacturing labour hours. The maximum demand for Special keyboards is 100 per month. Management desires a product mix that will maximize the contribution toward fixed costs and profits. Direct manufacturing labour is limited to 2,200 hours a month and machine hours are limited to 800 a month. The Regular keyboards require 15 hours of labour and 9 machine hours. Special keyboards require 30 labour hours and 18 machine hours. Select the appropriate linear programming objective and constraint functions designed to maximize Computer Products total contribution margin. Let R represent Regular keyboards and S represent Special keyboards. O a. Maximize: $150R + $750S Labour hours: 15R + 30S s 2,200 Constraints: Machine hours: 9R + 18S s 800 Special: S2100 Sso Regular: RSO b. Maximize: $750$ + $150R Labour hours: 15R + 30S s 2,200 Constraints: Machine hours: 9R + 18S s 800 Special: Ss 100 S>0 Regular: R20. c. Maximize: $750S + $150R Labour hours: 15R +9S S 2,200 Constraints: Machine hours: 30R + 18S s 800 Special: Ss 100 S20 Regular: R20 O d. Maximize: $150R +$750S Labour hours: 15R + 30S 2 2,200 Constraints: Machine hours: 9R + 185 2 800 Special: Ss 100 S20 Regular: R20

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management Accounting And Control

Authors: Don R. Hansen, Maryanne M. Mowen

3rd Edition

0324002327, 978-0324002324

More Books

Students also viewed these Accounting questions

Question

Define broadbanding. What is the purpose of using broadbanding?

Answered: 1 week ago

Question

Distinguish between merit pay, bonus, spot bonuses, and piecework.

Answered: 1 week ago