Grush Consulting Has Five Projects to Consider

question 40

Essay

Grush Consulting has five projects to consider.Each will require time in the next two quarters according to the table below. ​
Revenue from each project is also shown.Develop a model whose solution would maximize revenue,meet the time budget of 25 in the first quarter and 20 in the second quarter,and not do both projects C and D.

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Definitions:

Sales Required

The minimum sales needed to achieve a specific financial goal or to cover costs.

Variable Cost

Costs that vary directly with the level of production or output.

Break-even Point

The level of production or sales at which total revenues equals total expenses, with no net loss or gain.

Contribution Margins

The amount remaining from sales revenue after all variable expenses have been deducted, indicating how much contributes to covering fixed costs and generating profit.