Company X manufactures four different types of toys for kids including cars, bikes, plane and ship. The gross margin, production, and profit are listed below for each items are shown below: Bike 1.3 Ship Product Gross margin/unit Minutes/unit Gross margin/minute Maximum production 280000 112000 Profit Car 0.3 Plane 0.75 1.2 2.5 1.5 2 0.30 0.52 0.50 0.60 18667 140000 84000 145600 14000 168000 Let the production capacity of the machine used for production is 4500 hours per year. Which of the following would be the minimum value of gross margin per minute of ship that would make it economical for production? (A)0.65 (B) 0.70 (C) 0.87 (D) Can't be determined
Company X manufactures four different types of toys for kids including cars, bikes, plane and ship. The gross margin, production, and profit are listed below for each items are shown below: Bike 1.3 Ship Product Gross margin/unit Minutes/unit Gross margin/minute Maximum production 280000 112000 Profit Car 0.3 Plane 0.75 1.2 2.5 1.5 2 0.30 0.52 0.50 0.60 18667 140000 84000 145600 14000 168000 Let the production capacity of the machine used for production is 4500 hours per year. Which of the following would be the minimum value of gross margin per minute of ship that would make it economical for production? (A)0.65 (B) 0.70 (C) 0.87 (D) Can't be determined
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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