Question

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:
Product
Car
Gross margin/unit 0.3
Minutes/unit
1
Gross margin/minute 0.30
Maximum production 280000
Profit
84000
Bike
1.3
2.5
0.52
112000
145600
Plane
0.75
1.5
0.50
18667
14000
Ship
1.2.
2
0.60
140000
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
Answer

Answer 1

Answer:

A: 0.65

Explanation:

Because the answer in cirrect