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Avinash S$.$ Bhangaonkar

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Ian D$.$ Bromley

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Mock Exam

Mock Exam

This assessment contains questions that allow partial and negative credit.

$235$ minutes remaining

$4$ OF $5$ QUESTIONS REMAINING

Test Content

Question $1$

$8$

Points

XYZ Corporation manufactures two electrical products: air conditioners and large fans. The assembly process for each is similar in that both require a certain amount of wiring and drilling. Each air conditioner takes $3$ hours of wiring and $2$ hours of drilling. Each fan must go through $2$ hours of wiring and $1$ hour of drilling. During the next production period, $240$ hours of wiring time are available and up to $140$ hours of drilling time may be used. Each air conditioner sold yields a profit of $25.$ Each fan assembled may be sold for a $15$ profit. Management also decides that to ensure an adequate supply of air conditioners for a contract, at least $20$ air conditioners should be manufactured. Because the company incurred overproduction of fans in the preceding period, management also insists that no more than $80$ fans be produced during this production period.

Formulate this production$-$mix situation as a Linear Programming model to maximise the profits $($only the mathematical model is expected in your answer$).$

Maximize profit $($x$,$ y$)=25$x$+15$y

$3$x $+2$y $2402$x $+$ y $140$ x $20$ y $80$ x $0$ y $0$

Question $2$

$12$

Points

XYZ corporation produces two products: A and B$.$ The monthly production is $20,000$ units of A and $50,000$ units of B$.$ Product A is produced in batches of $1,000$ units each time and Product B is produced in batches of $5000$ each time. Setup activities need to be done when a new batch of production start and the total set$-$up cost is $30,000$ each month and the company uses Activity Based Costing with the number of production runs as the cost driver.

Based on ABC, choose the correct statements given.

Total number of setups that is required is $30$

Cost per setup is $1000$

Total cost for product A based on setup is $20,000$

Cost per unit of product A will be $1$ per unit

Cost per unit of product A will be $0\mathrm{.}5$ per unit

Cost per unit of product B will be $0\mathrm{.}2$ per unit

Cost per unit of product B will be $0\mathrm{.}1$ per unit

Total cost for product B based on setup is $10,000$

Total cost for product B based on setup is $5,000$

Total cost for product A based on setup is $10,000$

Cost per setup is $2000$

Total number of setups that is required is $20$