Hillary and Bill Are Married and Have a Young Child

question 221

Multiple Choice

Hillary and Bill are married and have a young child.Both work,but Hillary earns a higher salary than Bill.Insurance experts suggest that:

• A)there is no real need for this couple to have life insurance,since they both are employed.
• B)the couple should take out equal amounts of life insurance for both Bill and Hillary.
• C)the couple should take out life insurance on both Hillary and Bill,but coverage on Hillary should be greater than coverage on Bill.
• D)the couple should take out a life insurance policy on their child,but do not need one on themselves.

Identify and interpret essential components of linear optimization problems such as the objective function, constraints, and decision variables.

Analyze the effects of changing parameters within linear optimization models on the optimal solution.

Explain the significance of constraint functions and differentiate between types of constraints in optimization problems.

Recognize and calculate the net profit in optimization scenarios to identify the maximization or minimization objective.

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Definitions:

Variable Costing

An accounting method that considers only variable costs for product costing, excluding fixed manufacturing overhead.

Unit Product Cost

The total cost to produce one unit of a product, including direct materials, direct labor, and allocated overheads.

Net Operating Income

An indicator of a company's profitability calculated by subtracting operating expenses from operating revenues, excluding taxes and interest.

Common Fixed Expenses

Overhead costs that do not fluctuate with the level of production or sales, such as rent, salaries of administrative staff, and insurance.