Consider the Following Linear Program

question 32

Multiple Choice

Consider the following linear program:
MAX z = 5x + 3y
S .t.    x - y ? 6
   X ? 1
The optimal solution

• A) is infeasible.
• B) occurs where x = 1 and y = 0.
• C) occurs where x = 0 and y = 1.
• D) results in an objective function value of 5.

---

Definitions:

Practical Capacity

The maximum production level that a company can sustain with the current resources and conditions in a realistic manner.

Overapplied Overhead

Overapplied overhead occurs when the amount of overhead allocated to products or services is greater than the actual overhead incurred.

Allocation of Budgeted Costs

This refers to the process of distributing the total budgeted costs across different departments, projects, or activities based on predetermined criteria.

User Department

A department within an organization that directly uses or benefits from a product or service, as opposed to departments involved in production or administration.