Variable Cells Constraints If the Right-Hand Side of Resource B Changes to 10

question 27

Multiple Choice

Variable cells
$$\begin{array} { | r | r | r | r | r | r | r | } \hline \text { Cell } & \text { Name } & \begin{array} { c } \text { Final } \\\text { Value }\end{array} & \begin{array} { c } \text { Reduced } \\\text { Cost }\end{array} & \begin{array} { c } \text { Objective } \\\text { Codficient }\end{array} & \begin{array} { c } \text { Allowable } \\\text { Increase }\end{array} & \begin{array} { c } \text { Allowuble } \\\text { Decrease }\end{array} \\\hline \text { \$B\$6 } & \text { Activity 1 } & 3 & 0 & 30 & 23 & 17 \\\hline \text { \$C\$6 } & \text { Activity 2 } & 6 & 0 & 40 & 50 & 10 \\\hline \text { \$D\$6 } & \text { Activity 3 } & 0 & - 7 & 20 & 7 & 1 \mathrm { E } + 30 \\\hline\end{array}$$
Constraints
$\begin{array}{|r|r|r|r|r|r|r|}\hline \text { Cell } & \text { Name } & \begin{array}{c}\text { Final } \\\text { Value }\end{array} & \begin{array}{c}\text { Shadow } \\\text { Price }\end{array} & \begin{array}{c}\text { Constraint } \\\text { R.H. Side }\end{array} & {\begin{array}{c}\text { Allowable } \\\text { Increase }\end{array}} & \begin{array}{c}\text { Allowable } \\\text { Decrease }\end{array} \\\hline \$ \mathrm{E} \$ 2 & \text { Resource A } & 20 & 7.78 & 20 & 10 & 12.5 \\\hline \$ \mathrm{E} \$ 3 & \text { Resource B } & 30 & 6 & 30 & 50 & 10 \\\hline \$ \mathrm{E} \$ 4 & \text { Resource C } & 18 & \mathrm{0} & 40 & 1 \mathrm{E}+30 & 22\\\hline\end{array}$
If the right-hand side of Resource B changes to 10, then the objective function value:

• A) will decrease by $120.
• B) will decrease by $60.
• C) will decrease by $20.
• D) will remain the same.
• E) can only be discovered by resolving the problem.

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Definitions:

Equivalent Units

A term used in cost accounting to express the amount of work completed in terms of fully finished units.

Beginning Work in Process

The value of goods that are in the process of being manufactured at the start of an accounting period, included in the calculation of cost of goods manufactured.

Ending Work in Process

The total value of goods that are in the production process but are not yet complete by the end of an accounting period.

Beginning Inventory

The worth of products ready for purchase at the beginning of a financial period.