If the Solution Values of a Linear Program Are Rounded

question 28

Multiple Choice

If the solution values of a linear program are rounded in order to obtain an integer solution, the solution is

• A) always optimal and feasible.
• B) sometimes optimal and feasible.
• C) always feasible.
• D) never optimal and feasible.

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Definitions:

Contribution Margin

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

Indirect Costs

Expenses not directly tied to a specific product or service, such as overhead, administrative salaries, and utilities.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Department Contribution Margin

A measure of a department's profitability, calculated as the difference between its sales and variable costs.