Ava Is Setting Up a Production Model for Her Jewelry-Making

question 68

Multiple Choice

Ava is setting up a production model for her jewelry-making business. She decides to use Solver to find the optimal number of topaz and onyx pendants to produce with the given constraints. One of the most important constraints is that the minimum number to produce is 100 of each. Please answer the questions below, referencing the above figure as needed.
-Ava's production plan contains no nonlinear formulas or arrangement. What should she do to the solving method used by the Solver?

• A) Leave the default GRG Nonlinear solving method.
• B) Change the solving method to Goal Seek.
• C) Change the solving method to Binary LP.
• D) Change the solving method to Simplex LP.

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Definitions:

Sunk Cost

A cost that has already been incurred and cannot be removed and therefore should not be considered in an investment decision.

Straight-Line Depreciation

A method of allocating an asset's cost evenly over its useful life, resulting in a consistent depreciation expense each year.

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding costs related to production or acquisition of goods.

Rate of Return

The percentage gain or loss on an investment over a specified time period.