Question

Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows:

Product	Selling Price per Unit			Variable Cost per Unit			Fixed Cost per Unit			DL Hours per Unit
A (Anchor bolts)	$	8.00		$	2.00		$	3.00		1
B (Bearings)	$	3.60		$	2.60		$	4.00		2
C (Castings)	$	8.00		$	4.00		$	1.00		4

There are 160 direct labor hours available. Machine-hour capacity allows 100 anchor bolts, only; 40 bearings, only; 60 casters, only; or any combination of the three that does not exceed the capacity.

The machine-hour constraint for Harrington's linear programming model is:

Multiple Choice

• The same as the labour-hour constraint.

• 1A + 2.50B + 1.67C ≤ 100.

• Indeterminable from the data given.

• A + B + C ≤ 200.

• 100A + 40B + 60C ≤ 20,000.

Answer 1

Ratio of bearings = 100/40 = 2.50

Ratio of casters = 100/60 = 1.67

The machine-hour constraint for Harrington's linear programming model is:

1A + 2.50B + 1.67C ≤ 100.

Option B is correct