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Figure 25-7
the Following Information Is Available for the Johnson

Question 24

Multiple Choice

Figure 25-7
The following information is available for the Johnson Boat Company, which sells two products:  3- Person Raft  Kayak  (Variable A )   (Variable B)   Selling price £50£80 Variable costs £35£50 Fixed costs (average)  £10£20 Processing time 2 hours 4 hours  Vinyl cover used 16sq.ft.12sq.ft.\begin{array}{lcc}&\text { 3- Person Raft } & \text { Kayak } \\&\text { (Variable } A \text { ) } & \text { (Variable B) }\\\text { Selling price } & £ 50 & £ 80 \\\text { Variable costs } & £ 35 & £ 50 \\\text { Fixed costs (average) } & £ 10 & £ 20 \\\text { Processing time } & 2 \text { hours } & 4 \text { hours } \\\text { Vinyl cover used } & 16 \mathrm{sq} . \mathrm{ft} . & 12 \mathrm{sq} . \mathrm{ft} .\end{array}
There are 100 hours available in the plant and 75 square metres of vinyl available per operating period.
-Refer to Figure 25-7. Which of the following statements is NOT correct?


A) The materials constraint favours kayaks over rafts.
B) The time constraint favours rafts over kayaks.
C) The material constraint favours rafts over kayaks.
D) The objective function favours kayaks over rafts.

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