One Constraint in an LP Problem Is: 12X + 7Y

question 74

Multiple Choice

One constraint in an LP problem is: 12X + 7Y > 4,000.If the optimal solution is X = 100 and Y = 500,this resource has

• A)slack variable of 700.
• B)surplus variable of 700.
• C)output coefficient of 700.
• D)none of the above.

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Definitions:

Unit Product Cost

The total cost (including materials, labor, and overhead) to produce a single unit of product.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a product.

Total Contribution Margin

The difference between total sales revenue and total variable costs.

Variable Costing

A pricing approach that incorporates just the variable production expenses, such as direct materials, direct labor, and variable manufacturing overhead, into the costs of products.