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The Following Information Is Available for Pullaway Trailer Company, Which

Question 97

Multiple Choice

The following information is available for Pullaway Trailer Company, which sells two products:  Trailer A  Trailer B  Processing time 2 hours 4 hours  Vinyl cover used 16 sq. ft. 12 sq. ft.  Selling price $50.00$80.00 Variable cost $35.00$50.00 Fixed cost $10.00$20.00\begin{array}{lll}&\text { Trailer A } & \text { Trailer B }\\\text { Processing time } & 2 \text { hours } & 4 \text { hours } \\\text { Vinyl cover used } & 16 \text { sq. ft. } & 12 \text { sq. ft. } \\\text { Selling price } & \$ 50.00 & \$ 80.00 \\\text { Variable cost } & \$ 35.00 & \$ 50.00 \\\text { Fixed cost } & \$ 10.00 & \$ 20.00\end{array} There are 100 hours available in the plant and 75 square feet of vinyl available per operating period.
Which of the following statements is INCORRECT?


A) The materials constraint favors Trailer B over Trailer A.
B) The time constraint favors Trailer A over Trailer B.
C) The material constraint favors Trailer A over Trailer B.
D) The objective function favors Trailer B over Trailer A.

Correct Answer:

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