The Following Linear Programming Problem Has Been Written to Plan

question 50

Multiple Choice

The following linear programming problem has been written to plan the production of two products. The company wants to maximize its profits. X₁ = number of product 1 produced in each batch
X₂ = number of product 2 produced in each batch How many units of resource one (the first constraint) are used if the company produces 10 units of product 1 and 5 units of product 2?

• A) 45
• B) 15
• C) 55
• D) 50

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Definitions:

Activity Variance

The difference between planned activity levels and actual activity levels, often used in budgeting and forecasting to analyze performance.

Budgeting

The process of creating a plan to spend your money, outlining expected revenues and expenses for a future period.

Actual Results

The real outcomes or results of business activities, measured in terms of performance, revenue, or profits, compared against planned or forecasted outcomes.

Shipping Container

A large, standard-sized metal box used for the transport of goods by sea or land.