A Linear Programming Maximization Problem Has Been Solved

question 23

Multiple Choice

A linear programming maximization problem has been solved. In the optimal solution, two resources are scarce. If an added amount could be found for only one of these resources, how would the optimal solution be changed?

• A) The shadow price of the added resource will rise.
• B) The solution stays the same; the extra resource can't be used without more of the other scarce resource.
• C) The extra resource will cause the value of the objective to fall.
• D) The optimal mix will be rearranged to use the added resource, and the value of the objective function will rise.
• E) The extra resource will cause the value of the objective to rise.

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Definitions:

Credit

A financial term defining the ability to obtain goods or services before payment, based on the trust that payment will be made in the future.

Underapplied Overhead

A situation where the applied manufacturing overhead is less than the actual manufacturing overhead costs incurred.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or products.

Manufacturing Overhead

All indirect costs associated with the production process, such as salaries of supervisors, maintenance of equipment, and factory rent.