What Combination of a and B Will Yield the Optimum

question 28

Multiple Choice

What combination of a and b will yield the optimum for this problem?
Maximize $6a + $15b, subject to (1) 4a + 2b < 12 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) cannot solve without values for a and b

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Definitions:

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all goods available for sale.

Conversion Costs

The expenses incurred in the process of converting raw materials into finished products, typically including labor and overhead costs.

Equivalent Units

A concept in process costing that converts partially completed units into a smaller number of fully completed units based on the percentage of completion.

Beginning Work in Process Inventory

The value of partially finished goods at the start of an accounting period.