Given the Following Linear Programming Problem That Minimizes Cost

question 41

Multiple Choice

Given the following linear programming problem that minimizes cost:
Min Z = 2x + 8y
Subject to (1) 8x + 4y ? 64
      (2) 2x + 4y ? 32
      (3) y ? 2
-What is the sensitivity range for the cost of x?

• A) 0 to 2
• B) 4 to 6
• C) 2 to 4
• D) 0 to 4

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Definitions:

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Activity-based Costing

An accounting method where overhead and indirect costs are allocated to the corresponding products and services based on the required activities.

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