At the Optimal Solution of a Linear Program, the Difference

question 27

Multiple Choice

At the optimal solution of a Linear Program, the difference between the right-hand-side value and the left-hand-side value of a constraint is the ____________________.

• A) shadow
• B) difference
• C) shortfall
• D) slack
• E) cushion

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Definitions:

Net Operating Income

Income from operations before interest and taxes, reflecting the profitability of a company's core business activities.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted.

Segment Margin

The amount of profit or loss generated by a specific segment of a business, after deducting direct and allocated expenses attributable to that segment.

Common Fixed Expenses

Expenses that do not vary with the level of production or sales and are typically required to run a business, such as rent, salaries, and insurance.