If the Right-Hand Side of Resource C Is Increased by 40,and

question 22

Multiple Choice

If the right-hand side of Resource C is increased by 40,and the right-hand side of Resource B is decreased by 20,then:

• A)the optimal solution remains the same
• B)the optimal solution will change
• C)the shadow price is valid
• D)the shadow price may or may not be not valid
• E)None of the above

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Definitions:

Sales Price Variance

The difference between the actual selling price of a product and its budgeted or planned selling price, multiplied by the actual quantity sold.

Opening Stock

The value of goods available for sale at the beginning of an accounting period.

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity level, allowing for more accurate forecasting and planning.

Indirect Labour Cost

Expenses related to employees that cannot be directly traced to specific products or services, such as maintenance staff or supervisors.