A Fitness Center Is Trying to Determine How to Allocate

question 22

Multiple Choice

A fitness center is trying to determine how to allocate funds for advertising. The manager decides to advertise on the radio and in the newspaper. Previous experience with such advertising leads the manager to expect responses when r adds are run on the radio and n adds appear in the newspaper. Each ad on the radio costs $13 and each newspaper ad costs $3. Using Lagrange multipliers, a student found that when $504 are budgeted for advertising, the maximum number of responses occurred from 26 radio ad and 56 newspaper ads and had Suppose the manager budgeted an additional $22 for advertising. What is the approximate change in the optimal value as a result of this change in the constraint level?

• A) 2,710 additional response
• B) 484 additional responses
• C) 22 additional responses
• D) 367 additional responses
• E) 1 additional response

Know the ownership and confidentiality aspects concerning working papers in the accounting profession.

Identify the role and oversight functions of the Public Company Accounting Oversight Board and the SEC in relation to public company audits.

Recognize the scenarios that could lead to accountants facing criminal sanctions and understand the possible defenses.

Grasp the legal principles surrounding the liability of accountants under various laws including the Securities Exchange Act of 1934 and the 1933 Securities Act.

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Definitions:

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, typically identified by a fall in GDP in two successive quarters.

Automobile Industry

A sector of the economy focused on the manufacture and sales of vehicles, including cars, trucks, and motorcycles.

Medical Services

Professional care or treatment provided by licensed healthcare providers, such as doctors and nurses, to maintain or improve an individual's health.

Economic Environment

The combination of social, financial, and economic conditions that affect the operation and development of a market or economy.