If You Try Different Starting Values for the Changing Cells

question 17

Multiple Choice

If you try different starting values for the changing cells and obtain different solutions:

• A) you can be confident there is no solution 
• B) there must be a mistake in your objective function 
• C) there must be a mistake in one of your constraints 
• D) you can keep the best solution you have found and hope that it is indeed optimal

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Definitions:

Net Income

The net income of a company, calculated by deducting all costs and taxes from its total revenues.

Accounting Break-Even

The sales level that results in zero project net income.

Forecasting Risk

The possibility that errors in projected cash flows lead to incorrect decisions.

Projected Sales

An estimate of the amount of revenue that a company expects to generate in a future period.