Exam 25: The Application of Linear Programming to Management Accounting

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?

Figure 25-4 The following information is available for Wilson Trailer Company, which sells two products: 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

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: -Refer to Figure 25-1. What is the equation for the constraint on materials?

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: -Refer to Figure 25-6. What is the objective function for Anderson Company?

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: -Refer to Figure 25-3. What is the constraint on machine hours for Tiffany Manufacturing Company?

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: -Refer to Figure 25-3. What is the constraint on labour hours for Tiffany Manufacturing Company?

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

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: -Refer to Figure 25-2. What is the constraint on labour hours for Heft Company?

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

Figure 25-4 The following information is available for Wilson Trailer Company, which sells two products: 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?

Figure 25-7 The following information is available for the Johnson Boat Company, which sells two products: 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:

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

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:

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: -Refer to Figure 25-1. What is the equation for the constraint on direct labour?

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: -Refer to Figure 25-3. What is the objective function to maximize profits for Tiffany Manufacturing Company?

Figure 25-7 The following information is available for the Johnson Boat Company, which sells two products: There are 100 hours available in the plant and 75 square metres of vinyl available per operating period. -Refer to Figure 25-7. Which of the following statements is NOT correct?

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: Required: 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?

Figure 25-5 The following information is available for Walters Furniture Company, which sells two products: 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?

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: -Refer to Figure 25-6. What is the equation for the constraint on direct labour?

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