An Analyst, Having Solved a Linear Programming Problem, Determined That

question 87

Multiple Choice

An analyst, having solved a linear programming problem, determined that he had 10 more units of resource Q than previously believed. Upon modifying his program, he observed that the list of basic variables did not change, but the value of the objective function increased by $30. This means that resource's Q's shadow price was

• A)$1.50.
• B)$3.00.
• C)$6.00.
• D)$15.00.
• E)$30.00.

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Definitions:

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of a tangible asset over its useful life evenly.

Gross Depreciable

The total cost or value of an asset that is subject to depreciation over its useful life.

AICPA Survey

A survey conducted by the American Institute of Certified Public Accountants that gathers information on various topics related to accounting practices, trends, and professional issues.

Straight-Line

A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.