Variable Cells Constraints What Is the Optimal Objective Function Value for This Problem

question 26

Multiple Choice

Variable cells
$\begin{array}{|r|r|r|r|r|r|r|}\hline \text { Cell } & \text { Name } & \begin{array}{c}\text { Final } \\\text { Value }\end{array} & \begin{array}{c}\text { Reduced } \\\text { Cost }\end{array} & \begin{array}{c}\text { Objective } \\\text { Coefficient }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Increase }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Decrease }\end{array} \\\hline \$ \mathrm{B} \$ 6 & \text { Activity 1 } & 0 & 425 & 500 & 1 \mathrm{E}+30 & 425 \\\hline \$ \mathrm{C} \$ 6 & \text { Activity 2 } & 27.5 & 0.0 & 300 & 500 & 300 \\\hline \$ \mathrm{D} \$ & \text { Activity 3 } & 0 & 250 & 400 & 1 \mathrm{E}+30 & 250 \\\hline\end{array}$
Constraints
$\begin{array}{|r|r|r|r|r|r|r|}\hline \text { Cell } & \text { Name } & \begin{array}{c}\text { Final } \\\text { Value }\end{array} & \begin{array}{c}\text { Shadow } \\\text { Price }\end{array} & \begin{array}{c}\text { Constraint } \\\text { R.H. Side }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Increase }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Decrease }\end{array} \\\hline \$ \mathrm{E} \$ 2 & \text { Benefit A } & 110 & 0 & 60 & 50 & 1 \mathrm{E}+3 \mathrm{C} \\\hline \$ \mathrm{E} \$ 3 & \text { Benefit B } & 110 & 75 & 110 & 1 \mathrm{E}+30 & 46 \\\hline \$\mathrm{E} \$ 4 & \text { Benefit C } & 137.5 & 0 & 80 & 57.5 & 1 \mathrm{E}+30 \\\hline\end{array}$
What is the optimal objective function value for this problem?

• A) It cannot be determined from the given information.
• B) 1,200
• C) 975
• D) 8,250
• E) 500

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Definitions:

Sales Quantity

Sales quantity is the total amount of units of a product or service sold during a specific period.

Marginal Revenue

The additional income earned by selling one more unit of a good or service; it can vary depending on the current level of output and market conditions.

Fourth Unit

Typically implies an incremental or additional unit in a sequence, often used in economics or logistics to discuss marginal utilities or effects.

Price Discrimination

The practice of charging different prices to different customers for the same product or service, based on factors like willingness to pay, location, or purchase volume.