Linear Programming Models Have Three Important Properties

question 12

Multiple Choice

Linear programming models have three important properties

• A)optimality,additivity,and sensitivity.
• B)optimality,linearity,and divisibility.
• C)divisibility,linearity,and nonnegativity.
• D)proportionality,additivity,and divisibility.

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Definitions:

Net Operating Income

Income from operations before interest and taxes, reflecting the profitability of a company's core business activities.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted.

Segment Margin

The amount of profit or loss generated by a specific segment of a business, after deducting direct and allocated expenses attributable to that segment.

Common Fixed Expenses

Expenses that do not vary with the level of production or sales and are typically required to run a business, such as rent, salaries, and insurance.