The Constraint 3x₁ + 6x₂ ≥ 48 Is Converted to an Equality

question 74

Multiple Choice

The constraint 3x₁ + 6x₂ ≥ 48 is converted to an equality by

• A) adding a slack variable.
• B) subtracting a surplus variable.
• C) adding both a slack variable and a surplus variable.
• D) subtracting both a slack variable and a surplus variable.

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Definitions:

Fixed Expenses

Expenses that remain constant regardless of any variations in the volume of production or sales.

Break-Even Point

The level of sales at which profit is zero.

Contribution Margin Ratio

A financial metric that measures the proportion of sales revenue that exceeds variable costs and contributes to covering fixed expenses and generating profit.

Net Loss

The result when a company's total expenses exceed its total revenues during a specific period, indicating a negative profit.