Comment on the Solution Shown in This Simplex Tableau

question 37

Essay

Comment on the solution shown in this simplex tableau. $$\begin{array} { c c | c c c c c c | c } & & \mathrm { x } _ { 1 } & \mathrm { x } _ { 2 } & \mathrm { x } _ { 3 } & \mathrm {~s} _ { 1 } & \mathrm {~s} _ { 2 } & \mathrm { a } _ { 1 } & \\\text { Basis } & \mathrm { C } _ { \mathrm { B } } & 1 & 2 & 5 & 0 & 0 & - \mathrm { M } & \\\hline \mathrm { a } _ { 1 } & - \mathrm { M } & - 3 & - 1 & 0 & - 1 & - 2 & 1 & 4 \\\mathrm { x } _ { 3 } & 5 & 1 & 1 / 2 & 1 & 0 & 1 / 2 & 0 & 4 \\\hline & \mathrm { z } _ { \mathrm { j } } & 5 + 3 \mathrm { M } & 2.5 + \mathrm { M } & 5 & \mathrm { M } & 2.5 + 2 \mathrm { M } & - \mathrm { M } & - 4 \mathrm { M } + 20 \\& \mathrm { c } _ { \mathrm { j } } - \mathrm { z } _ { \mathrm { j } } & - 4 - 3 \mathrm { M } & - .5 - \mathrm { M } & 0 & - \mathrm { M } & - 2.5 - 2 \mathrm { M } & 0 &\end{array}$$

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Definitions:

Level Of Activity

Refers to the volume of work performed or capacity utilized within a specific period.

Fixed Manufacturing Overhead

The costs that do not change with the level of production, including costs such as rent, insurance, and salaries for management.

Direct Materials

Direct materials are raw materials that are directly traceable to the manufacturing of a specific product and constitute a significant portion of its production cost.

Direct Labor

The labor costs directly tied to the production of goods, including wages of workers actively engaged in manufacturing.