An Intern Sets Up a Linear Program to Optimize the Use

question 7

Multiple Choice

An intern sets up a linear program to optimize the use of paper products in the men's washroom. The system of equations he develops is:
Max 2T + 3S + 4ST
S.t    3T + 6S ? 40
   10T + 10S ? 66
   10T + 15S ? 99
His mentor studies the model, frowns, and admonishes the intern for violating which of the following properties of linear programming models?

• A) Divisibility
• B) Proportionality
• C) Certainty
• D) Additivity

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Definitions:

Amortized

The process of spreading the cost of an intangible asset over its useful life, or the gradual reduction of a debt through regular payments of principal and interest over a set period.

Undervalued Equipment

Equipment whose market value is higher than its book value or valuation on financial statements, suggesting it may be worth more than it appears.

Non-Controlling Interest

A share in the equity and profits of a subsidiary that are not owned by the parent company.

Goodwill Impairment

A write-down that occurs when the fair value of a company's goodwill asset is less than its recorded (carrying) cost, indicating a decline in the value of acquired businesses.