Exam 25: The Application of Linear Programming to Management Accounting

arrow
  • Select Tags
search iconSearch Question
  • Select Tags

Figure 25-1 Hassel Company manufactures two different products, X and Y. The company has 100 kgs of materials and 300 direct labour hours available for production. The time requirements and contribution margins per unit are as follows: Product X Product Y Contribution margin per unit £4 £5 Materials per unit (lbs.) 1 2 Direct labour hours per unit 4 2 -Refer to Figure 25-1. What is the equation for the constraint on materials?

Free
(Multiple Choice)
4.9/5
(40)
Correct Answer:
Verified

A

Using the graphic approach to linear programming, the solution is usually

Free
(Multiple Choice)
4.8/5
(20)
Correct Answer:
Verified

A

Figure 25-6 Anderson Company manufactures two different products: A and B. The company has 100 kgs of raw materials and 300 direct labour-hours available for production. The time requirements and contribution margins per unit are as follows: A B Raw materials per unit (lbs.) 1 2 Direct-labour hours per unit 4 2 Contribution margin per unit E4 E5 -Refer to Figure 25-6. What is the objective function for Anderson Company?

Free
(Multiple Choice)
4.7/5
(35)
Correct Answer:
Verified

B

Figure 25-3 Tiffany Manufacturing Company produces X and Y with contribution margins per unit of £10 and £90, respectively. Only 200 labour hours and 400 machine hours are available for production. Time requirements to produce one unit of X and Y are as follows: Product A Product B Labour hours per unit 1 2 Machine hours per unit 5 1 -Refer to Figure 25-3. What is the objective function to maximize profits for Tiffany Manufacturing Company?

(Multiple Choice)
4.9/5
(35)

Figure 25-6 Anderson Company manufactures two different products: A and B. The company has 100 kgs of raw materials and 300 direct labour-hours available for production. The time requirements and contribution margins per unit are as follows: A B Raw materials per unit (lbs.) 1 2 Direct-labour hours per unit 4 2 Contribution margin per unit E4 E5 -Refer to Figure 25-6. What is the equation for the constraint on direct labour?

(Multiple Choice)
4.7/5
(46)

A linear programming model would NOT include which of the following items?

(Multiple Choice)
4.8/5
(32)

Smith Products Ltd.produces two products. The manufacture of these products is partially automated. Total available labour hours are 400, and the total available machine hours are 600. Time requirements and contribution margins per unit for each product are as follows: Product X Product Y Labour hours 2 3 Machine hours 4 2 Contribution margin per unit E5 £4 a.What is the equation to be maximized? b.What are the equations that express the constraints? c.What is the greatest number of units of A that can be produced given the constraints? d.What is the optimal solution?

(Essay)
4.8/5
(39)

Figure 25-7 The following information is available for the Johnson Boat Company, which sells two products: 3- Person Raft Kayak (Variable A ) (Variable B) Selling price £50 £80 Variable costs £35 £50 Fixed costs (average) £10 £20 Processing time 2 hours 4 hours Vinyl cover used 16.. 12.. There are 100 hours available in the plant and 75 square metres of vinyl available per operating period. -Refer to Figure 25-7. The constraint equation representing the materials available for the production processes is:

(Multiple Choice)
4.9/5
(19)

A linear programming model would NOT include which of the following items?

(Multiple Choice)
4.8/5
(34)

Figure 25-4 The following information is available for Wilson Trailer Company, which sells two products: Trailer A Trailer B Processing time 2 hours 4 hours Vinyl cover used 16 sq. ft. 12 sq. ft. Selling price £50.00 £80.00 Variable cost £35.00 £50.00 Fixed cost £10.00 £20.00 There are 100 hours available in the plant and 75 square metres of vinyl available per operating period. -Refer to Figure 25-4. Which of the following statements is INCORRECT?

(Multiple Choice)
4.8/5
(35)

A linear programming problem has an objective function of 10X + 12Y. If the optimal solution provided by the model is to produce and sell 400 units of X and 1,000 units of Y, the expected return is

(Multiple Choice)
4.8/5
(36)

Coffee Ltd.manufactures two different miniature models of furniture, a table and a chair. The company has 500 metres of lumber, 400 machine hours, and 600 direct labour hours available for production. The miniature tables and chairs provide £5 and £4 of contribution margin, respectively. The time and lumber requirements to build a miniature table or chair are as follows: Table Chair Metres oflumber per unit 5 2 Machine hours per unit 2 3 Direct labour hours per unit 4 2 a.What is the objective function being maximized? b.What are the constraint equations? c.Graph the constraint equations. Identify the feasible region. d.What is the optimal solution?

(Essay)
4.8/5
(28)

Figure 25-1 Hassel Company manufactures two different products, X and Y. The company has 100 kgs of materials and 300 direct labour hours available for production. The time requirements and contribution margins per unit are as follows: Product X Product Y Contribution margin per unit £4 £5 Materials per unit (lbs.) 1 2 Direct labour hours per unit 4 2 -Refer to Figure 25-1. What is the objective function for maximizing profits?

(Multiple Choice)
4.8/5
(31)

In the graphic method of solving a linear programming problem, which of the following is depicted on the graph?

(Multiple Choice)
4.8/5
(29)

Figure 25-2 Heft Company produces A and B with contribution margins per unit of £40 and £30, respectively. Only 500 labour hours and 300 machine hours are available for production. Time requirements to produce one unit of A and B are as follows: Product A Product B Labour hours per unit 5 2 Machine hours per unit 1 4 -Refer to Figure 25-2. What is the constraint on machine hours for Heft Company?

(Multiple Choice)
4.8/5
(29)

Figure 25-4 The following information is available for Wilson Trailer Company, which sells two products: Trailer A Trailer B Processing time 2 hours 4 hours Vinyl cover used 16 sq. ft. 12 sq. ft. Selling price £50.00 £80.00 Variable cost £35.00 £50.00 Fixed cost £10.00 £20.00 There are 100 hours available in the plant and 75 square metres of vinyl available per operating period. -Refer to Figure 25-4. The constraint equation representing the materials available for the production processes is

(Multiple Choice)
4.8/5
(42)

A linear programming problem has an objective function of 10a + 12b. If the optimal solution provided by the model is to produce and sell 400 units of a and 1,000 units of b, the expected profit is:

(Multiple Choice)
4.9/5
(34)

Figure 25-5 The following information is available for Walters Furniture Company, which sells two products: Table X Table Y Processing time 4 hours 6 hours Metal used 30.. 18.. Selling price £200.00 £100.00 Variable cost £150.00 £60.00 Fixed cost £30.00 £30.00 There are 200 hours available in the plant and 200 square metres of metal available per operating period. -Refer to Figure 25-5. What is the objective function for maximizing sales?

(Multiple Choice)
4.7/5
(36)

Figure 25-7 The following information is available for the Johnson Boat Company, which sells two products: 3- Person Raft Kayak (Variable A ) (Variable B) Selling price £50 £80 Variable costs £35 £50 Fixed costs (average) £10 £20 Processing time 2 hours 4 hours Vinyl cover used 16.. 12.. There are 100 hours available in the plant and 75 square metres of vinyl available per operating period. -Refer to Figure 25-7. The objective function for this production situation is to:

(Multiple Choice)
4.9/5
(33)

A linear programming problem has the following objective function: 20X + 40Y + 60Z. If the optimal solution provided by the model is to produce and sell 100, 200 and 300 units of X, Y, and Z, respectively, what is the expected return?

(Multiple Choice)
4.9/5
(37)
Showing 1 - 20 of 30
close modal

Filters

  • Essay(0)
  • Multiple Choice(0)
  • Short Answer(0)
  • True False(0)
  • Matching(0)