NBAA CPA Foundation Practice Questions - NBAA Certified Public Accountant (CPA) Foundation Level Exam

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A production manager at a textile factory in Arusha is formulating a linear programming model to maximize contribution. The factory produces two products, Kitenge (x) and Kanga (y). Kitenge contributes TZS 5,000 per unit and Kanga TZS 4,000 per unit. Kitenge requires 2 hours of labor and Kanga requires 1 hour of labor. The total available labor is 80 hours. Which of the following correctly represents the objective function and the labor constraint?
Correct Answer:
Maximize Z = 5000x + 4000y; subject to: 2x + y <= 80

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