If the Objective Is to Maximize Profits in a Linear

question 64

Multiple Choice

If the objective is to maximize profits in a linear programming problem,what should be the coefficients of the variables in the objective function?

• A)the selling price per unit
• B)the variable costs per unit
• C)the contribution margin per unit
• D)the fixed costs per unit

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Definitions:

Return on Sales Ratio

A financial metric that measures the portion of a company's revenue that is converted into profit.

Net Income Before Taxes

The profit a company generates after all expenses have been deducted from revenues but before income taxes are subtracted.

Liquidity

The ability of an asset to be converted into cash quickly without losing value.

Asset Management

The method of creating, running, upkeeping, and marketing assets in an economical way.