What Combination of a and B Will Yield the Optimum

question 98

Multiple Choice

What combination of a and b will yield the optimum for this problem? Maximize $6a + $15b, subject to (1) 4a + 2b ≤ 16 and (2) 5a + 2b ≤ 20 and (3) a, b ≥ 0.

• A) a = 0, b = 0
• B) a = 3, b = 3
• C) a = 0, b = 6
• D) a = 6, b = 0
• E) a = 0, b = 8

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Definitions:

Fiscal Year

A one-year period used for financial reporting and budgeting by companies and governments, which may not align with the calendar year.

Depreciation Rate

The percentage at which an asset is depreciated each period, often used to allocate the cost of an asset over its useful life.

Tax Deduction

A reduction in taxable income, which can lower the total tax bill, allowed for certain expenses or investments.

Discount Rate

The interest rate used in discounted cash flow analysis to present future cash flows in terms of their value today.