If a Firm Is Using a Linear Program to Determine

question 67

Multiple Choice

If a firm is using a linear program to determine production amounts of its chairs and tables, which of the following constraints must be in the model?

• A) non-negativity
• B) labor hours
• C) machine hours
• D) profit maximization
• E) wood availability

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Definitions:

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding costs related to production.

Annual Cost Savings

The reduction in costs achieved during a year due to various savings measures or efficiencies.

Discount Factor

A multiplier used in discounted cash flow (DCF) analyses to determine the present value of future cash flows, reflecting the time value of money.

Proposed Project

An outlined plan or proposal for undertaking a specific activity or achieving a goal that requires approval or funding.