Apply Linear Programming to This Problem

question 4

Multiple Choice

Apply linear programming to this problem.A firm wants to determine how many units of each of two products (products D and E) they should produce to make the most money.The profit in the manufacture of a unit of product D is $100 and the profit in the manufacture of a unit of product E is $87.The firm is limited by its total available labor hours and total available machine hours.The total labor hours per week are 4,000.Product D takes 5 hours per unit of labor and product E takes 7 hours per unit.The total machine hours are 5,000 per week.Product D takes 9 hours per unit of machine time and product E takes 3 hours per unit.Which of the following is one of the constraints for this linear program?

• A)5 D + 7 E =< 5,000
• B)9 D + 3 E => 4,000
• C)5 D + 7 E = 4,000
• D)5 D + 9 E =< 5,000
• E)9 D + 3 E =< 5,000

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Definitions:

Implicit Interest Rate

An interest rate inferred from the cost of borrowing, or the return on investment, that is not explicitly stated.

AASB 16

The Australian Accounting Standards Board standard on leases, which outlines the principles for recognition, measurement, presentation, and disclosure of leases.

IFRS 16

The International Financial Reporting Standard dictating lease accounting, requiring lessees to recognize nearly all leases on the balance sheet.

Lease Agreements

Contracts that outline the terms under which one party agrees to rent property owned by another party.