Consider the Portion of the Sensitivity Analysis Report That Follows

question 76

Multiple Choice

Consider the portion of the sensitivity analysis report that follows.The current optimal solution will not change as long as the objective coefficient of X₁ is within the range of ______. $$\begin{array} { | l | l | l | l | l | l | l | } \hline \text { Cell } & \text { Name } & \begin{array} { l } \text { Final } \\\text { Value }\end{array} & \begin{array} { l } \text { Reduced } \\\text { Cost }\end{array} & \begin{array} { l } \text { Objective } \\\text { Coefficient }\end{array} & \begin{array} { l } \text { Allowable } \\\text { Increase }\end{array} & \begin{array} { l } \text { Allowable } \\\text { Decrease }\end{array} \\\hline \text { \$F\$6 } & \begin{array} { l } \text { Shirt } \\\text { (X1) }\end{array} & 24 & 0 & 5 & 4 & 1 \\\hline \text { \$G\$6 } & \begin{array} { l } \text { Pants } \\\text { (X2) }\end{array} & 84 & 0 & 6 & 1.5 & 2.666667 \\\hline\end{array}$$

• A)4 to 9
• B)1 to 4
• C)5 to 9
• D)3 to 6

---

Definitions:

Net Operating Income

A measure of a property's profitability, calculated by subtracting all operating expenses from the gross operating income.

Variable Costing

An accounting method that considers only variable production costs (such as materials and labor) in the calculation of product costs.

Net Operating Income

The profit derived from a company's regular business operations after deducting operating expenses such as rent, wages, and utilities.

Direct Labor Cost

The total cost of workforce expenses directly involved in the manufacturing of products or delivery of services, excluding indirect labor costs.