An Open Rectangular Box Is to Contain 864 Cubic Inches

question 177

Short Answer

An open rectangular box is to contain 864 cubic inches. Use the Lagrange multiplier method to find the dimensions of the box which uses the least amount of material.

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Definitions:

Common Fixed Expenses

Expenses that remain constant in total over a relevant range of time or production volume and are shared by multiple business segments or products.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much revenue is contributing to cover fixed expenses and profit.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production, such as rent, salaries of permanent staff, and property taxes on a factory.

Variable Costing

A method of accounting that incorporates only the costs that vary with production into the cost of products, leaving out any fixed manufacturing overhead.