Considering the constraint in processing, which combination of Products A and B maximizes the total contribution margin? a.40 units of A and 20 units of B b. 60 units of A and 0 units of B c. 80 units of A and 0 units of B d. O units of A and 40 units of B e. O units of A and 60 units of B

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter6: Optimization Models With Integer Variables
Section6.3: Capital Budgeting Models
Problem 3P: Solve Problem 1 with the extra assumption that the investments can be grouped naturally as follows:...
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4. The Kalakian Company makes toys A and B, each of which needs two processes: cutting and wrapping. The
contribution margin is P6 for Product A and P5 for Product B. the table below shows the maximum number
of units (constraint) of each product that may be processed in two departments.
Maximum Capacities (In Product Units)
CUTTING
WRAPPING
Product A
60
80
Product B
60
40
Considering the constraint in processing, which combination of Products A and B maximizes the total
contribution margin?
a.40 units of A and 20 units of B
b. 60 units of A and 0 units of B
c. 80 units of A and 0 units of B
d. O units of A and 40 units of B
e. O units of A and 60 units of B
Transcribed Image Text:4. The Kalakian Company makes toys A and B, each of which needs two processes: cutting and wrapping. The contribution margin is P6 for Product A and P5 for Product B. the table below shows the maximum number of units (constraint) of each product that may be processed in two departments. Maximum Capacities (In Product Units) CUTTING WRAPPING Product A 60 80 Product B 60 40 Considering the constraint in processing, which combination of Products A and B maximizes the total contribution margin? a.40 units of A and 20 units of B b. 60 units of A and 0 units of B c. 80 units of A and 0 units of B d. O units of A and 40 units of B e. O units of A and 60 units of B
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