ITPEC IP October 2025 Question 66

Source exam: ITPEC IP October 2025Topic: Corporate Activities

ITPEC IP October 2025 — Question 66 of 100

Six units can be manufactured — production is limited by whichever required material runs out first.

Material A permits 60 ÷ 10 = 6 units. Material B permits 40 ÷ 5 = 8 units. Every finished unit needs both materials, so production cannot exceed the smaller capacity: min(6, 8) = 6. After six units, A is exhausted while 10 kg of B remains.

Answer (b)

Why not others:
- (a) 4 underuses both available materials

- (c) 8 considers B alone and would require 80 kg of A

- (d) 10 exceeds the capacity of both A and B

Key rule: With multiple mandatory inputs, calculate output capacity from each resource separately and choose the minimum as the binding constraint.

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