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You have been asked to select at least 3 out of 7 possible sites for oil exploration. Designate each site as S1, S2, S3, S4, S5, S6, and S7. The restrictions are:
Restriction 1. Evaluating sites S1 and S3 will prevent you from exploring site S7.
Restriction 2. Evaluating sites S2 or S4 will prevent you from assessing site S5.
Restriction 3. Of all the sites, at least 3 should be assessed.
Assuming that Si is a binary variable, write the constraint for the third restriction.
Target Profit
The desired net income a company aims to achieve within a specific period.
Contribution Margin Ratio
The contribution margin ratio is the percentage of each sales dollar remaining after deducting variable expenses, indicating how much of each dollar contributes to fixed expenses and profit.
Operating Leverage
An indicator of the way in which growth in revenue results in an increase in operating profit, revealing the ratio of fixed to variable expenses within a business.
Net Operating Income
The total profit of a company after operating expenses are deducted, but before taxes and interest payments.
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