A Section of Output from the Management Scientist Is Shown

question 17

Multiple Choice

A section of output from The Management Scientist is shown here. What will happen if the right-hand-side for constraint 2 increases by 200?
$$\begin{array} { l l l l } \text { Constraint } & \text { Lower Limit } & \text { Current Value } & \text { Upper Limit } \\\hline 2 & 240 & 300 & 420\end{array}$$

• A)Nothing.The values of the decision variables,the dual prices,and the objective function will all remain the same.
• B)The value of the objective function will change,but the values of the decision variables and the dual prices will remain the same.
• C)The same decision variables will be positive,but their values,the objective function value,and the dual prices will change.
• D)The problem will need to be resolved to find the new optimal solution and dual price.

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Definitions:

Net Income

The net income of a company, which is calculated by deducting all costs and taxes from its total earnings.

Break-Even Point

The production level or sales volume at which total revenues equal total expenses, resulting in no net loss or gain.

Contribution Margin Ratio

A financial metric that represents the percentage of sale price that remains after variable costs are subtracted.

Sales Dollars

The total amount of money generated from the sale of goods or services before any expenses are subtracted.