One Way to Find an Optimal Solution to the IP

question 97

Multiple Choice

One way to find an optimal solution to the IP problem is to:

• A) use a B&B technique
• B) use LP relaxation and round the values of the decision variables up to the nearest integer value
• C) use LP relaxation and round the values of the decision variables down to the nearest integer value
• D) use LP relaxation and round 50 percent of the decision variable values down to the nearest integer value and the remaining 50 percent up to the nearest integer value

---

Definitions:

Factory Overhead Cost Budget

A budget that estimates the cost for each item of factory overhead needed to support budgeted production.

Total Variable Cost

The sum of all costs that vary directly with the level of production, including materials and direct labor.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent or salaries.

Factory Overhead Cost Budget

An estimate of expected factory overhead costs for a specific period, used for planning and controlling manufacturing expenses.