Which of the following is the objective? O Demand for electronic smoke detectors (20,000) O Unit retail price ($29.50 and $28.00 for electronic and battery- detectors, respectively) O In-house production quantity of electronic smoke alarms O Smoke alarm capacity of subcontractor (20,000)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter2: Fundamental Economic Concepts
Section: Chapter Questions
Problem 2E
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Which of the following is the objective?
O Demand for electronic smoke detectors (20,000)
O Unit retail price ($29.50 and $28.00 for electronic and battery-operated smoke
detectors, respectively)
O In-house production quantity of electronic smoke alarms
O Smoke alarm capacity of subcontractor (20,000)
O Acme cannot produce or purchase more alarms than the demand
O Demand for battery-operated smoke detectors (10,000)
Profits
O In-house production quantity of battery-operated smoke detectors
O Production hours required per unit of the battery-operated smoke detectors
(0.10, 0.20, and 0.15 for Fabrication, Assembly, and Shipping, respectively)
O Monthly Hours Available for Fabrication, Assembly, and Shipping (2000, 4200,
and 2500, respectively)
O Quantity of electronic smoke alarms to purchase from the subcontractor
Transcribed Image Text:Which of the following is the objective? O Demand for electronic smoke detectors (20,000) O Unit retail price ($29.50 and $28.00 for electronic and battery-operated smoke detectors, respectively) O In-house production quantity of electronic smoke alarms O Smoke alarm capacity of subcontractor (20,000) O Acme cannot produce or purchase more alarms than the demand O Demand for battery-operated smoke detectors (10,000) Profits O In-house production quantity of battery-operated smoke detectors O Production hours required per unit of the battery-operated smoke detectors (0.10, 0.20, and 0.15 for Fabrication, Assembly, and Shipping, respectively) O Monthly Hours Available for Fabrication, Assembly, and Shipping (2000, 4200, and 2500, respectively) O Quantity of electronic smoke alarms to purchase from the subcontractor
O Production hours required per unit of the electronic smoke detectors (0.15,
0.20, and 0.10 for Fabrication, ASsembly, and Shipping, respectively)
O Acme cannot exceed the available in-house hours for any department
O Quantity of battery-operated smoke alarms to purchase from the subcontractor
O Unit cost to purchase either electronic or battery-operated smoke alarms from
the subcontractor ($21.50)
O Acme cannot purchase a quantity of smoke alarms from the subcontractor that
exceeds the subcontractor's capacity
O The variable production cost per unit ($18.80 and $16.00 for electronic and
battery-operated smoke detectors, respectively)
Transcribed Image Text:O Production hours required per unit of the electronic smoke detectors (0.15, 0.20, and 0.10 for Fabrication, ASsembly, and Shipping, respectively) O Acme cannot exceed the available in-house hours for any department O Quantity of battery-operated smoke alarms to purchase from the subcontractor O Unit cost to purchase either electronic or battery-operated smoke alarms from the subcontractor ($21.50) O Acme cannot purchase a quantity of smoke alarms from the subcontractor that exceeds the subcontractor's capacity O The variable production cost per unit ($18.80 and $16.00 for electronic and battery-operated smoke detectors, respectively)
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