ITPEC IP October 2023 Question 68

Source exam: ITPEC IP October 2023Topic: Corporate Activities

ITPEC IP October 2023 — Question 68 of 100

The maximum production is 6 units because raw material A is the limiting resource. Material A supports 60 ÷ 10 = 6 units. Material B supports 40 ÷ 5 = 8 units. Each completed unit needs both materials, so production cannot exceed the smaller of the two capacities: min(6, 8) = 6.

Answer (b)

Why not others:
- 4 leaves enough of both materials for additional units

- 8 is possible from B alone but would require 80 kg of A, exceeding the available 60 kg

- 10 exceeds the capacity of both materials

Key rule: With multiple required resources, the maximum output is determined by the most restrictive resource constraint.

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