If One Changes the Contribution Rates in the Objective Function

question 79

Multiple Choice

If one changes the contribution rates in the objective function of an LP,

• A)the feasible region will change.
• B)the slope of the isoprofit or isocost line will change.
• C)the optimal solution to the LP is sure to no longer be optimal.
• D)All of the above
• E)None of the above

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Definitions:

Average Cost Formula

An inventory costing method that assigns the average cost of goods available for sale to both ending inventory and cost of goods sold.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal, essentially the net value obtainable.

Inventory

The goods and materials a business holds for the ultimate purpose of resale, comprising raw materials, work-in-progress products, and finished goods.

Physical Flow

The actual movement of goods through a production process or supply chain.