Variable Cells Constraints If the Right-Hand Side of Resource B Changes to 80

question 8

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
$\begin{array}{|r|r|r|r|r|r|r|}\hline \text { Cell } & \text { Name } & \begin{array}{c}\text { Final } \\\text { Value }\end{array} & \begin{array}{c}\text { Shadow } \\\text { Price }\end{array} & \begin{array}{c}\text { Constraint } \\\text { R.H. Side }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Increase }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Decrease }\end{array} \\\hline \$ \mathrm{E} \$ 2 & \text { Benefit A } & 110 & 0 & 60 & 50 & 1 \mathrm{E}+3 \mathrm{C} \\\hline \$ \mathrm{E} \$ 3 & \text { Benefit B } & 110 & 75 & 110 & 1 \mathrm{E}+30 & 46 \\\hline \$\mathrm{E} \$ 4 & \text { Benefit C } & 137.5 & 0 & 80 & 57.5 & 1 \mathrm{E}+30 \\\hline\end{array}$
If the right-hand side of Resource B changes to 80, then the objective function value:

• A) will decrease by $750.
• B) will decrease by $1,500.
• C) will decrease by $2,250.
• D) will remain the same.
• E) can only be discovered by resolving the problem.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, important in financial analysis and investment decisions.

Lease Payments

Lease payments are regular payments made by a lessee to a lessor for the use of an asset, such as property or equipment, over a specified lease term.

Annual Payment

A payment made once a year, often referring to the total amount paid over a twelve-month period for a particular expense.

Desired Sum

An intended total amount or goal that one aims to achieve through calculation or accumulation.