MC Question 13
You will get this Formula Table at the exam so learn well how to apply it in your ACCA PM (F5) Exam
Highfly Co manufactures two products, X and Y, and any quantities produced can be sold for $60 per unit and $25 per unit respectively.
Variable costs per unit of the two products are as follows:
Product X | Product Y | |
---|---|---|
$ | $ | |
Materials (at $5 per kg) | 15 | 5 |
Labour (at $6 per hour) | 24 | 3 |
Other variable costs | 6 | 5 |
Total | 45 | 13 |
Next month, only 4,200 kg of material and 3,000 labour hours will be available. The company aims to maximise its profits each month.
The company wants to use the linear programming model to establish an optimum production plan. The model considers ‘x’ to be number of units of product X and ‘y’ to be the number of units of product Y.
Which of the following objective functions and constraint statements (relating to material and labour respectively) is correct?
Objective function | Material constraint | Labour constraint | |
---|---|---|---|
A. | 60x + 25y | 3x + y ≤ 4,200 | 4x + 0·5y ≤ 3,000 |
B. | 15x + 12y | 3x + y ≥ 4,200 | 4x + 0·5y ≥ 3,000 |
C. | 15x + 12y | 3x + y ≤ 4,200 | 4x + 0·5y ≤ 3,000 |
D. | 60x + 25y | 3x + y ≥ 4,200 | 4x + 0·5y ≥ 3,000 |