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Figure 25-6
Anderson Company Manufactures Two Different Products: a and B

Question 7

Multiple Choice

Figure 25-6
Anderson Company manufactures two different products: A and B. The company has 100 kgs of raw materials and 300 direct labour-hours available for production.
The time requirements and contribution margins per unit are as follows: AB Raw materials per unit (lbs.)  12 Direct-labour hours per unit 42 Contribution margin per unit E4E5\begin{array}{lcr}&A&B\\\text { Raw materials per unit (lbs.) } & 1 & 2 \\\text { Direct-labour hours per unit } & 4 & 2 \\\text { Contribution margin per unit } & E 4 & E 5\end{array}
-Refer to Figure 25-6. What is the objective function for Anderson Company?


A) Minimize £4A + £5B.
B) Maximize £4A + £5B.
C) Maximize £1A + £2B.
D) Maximize £4A + £2B.

Correct Answer:

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