Question 1

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

Accepted Answer

A)  a corner point where two or more constraints intersect. 
B)  where the lines intersect farthest from zero. 
C)  the point farthest from the Y-axis. 
D)  the point farthest from the X-axis. 
A)  a corner point where two or more constraints intersect. 
B)  where the lines intersect farthest from zero. 
C)  the point farthest from the Y-axis. 
D)  the point farthest from the X-axis.

Question 2

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 objective function for maximizing profits?

Accepted Answer

A)  Minimize £4X + £5Y 
B)  Maximize £4X + £5Y 
C)  Maximize £1X + £2Y 
D)  Maximize £4X + £2Y 
A)  Minimize £4X + £5Y 
B)  Maximize £4X + £5Y 
C)  Maximize £1X + £2Y 
D)  Maximize £4X + £2Y

Question 3

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. The constraint equation representing processing time available is

Accepted Answer

A)  4X + 6Y $\ge$ 200. 
B)  4X + 6Y $\le$200. 
C)  30X + 18Y $\le$200. 
D)  4X + 6Y$\le$ 400. 
A)  4X + 6Y $\ge$ 200. 
B)  4X + 6Y $\le$200. 
C)  30X + 18Y $\le$200. 
D)  4X + 6Y$\le$ 400.

Question 4

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 machine hours for Heft Company?

Accepted Answer

A)  1A + 4B $\le$ 500 
B)  5A + 2B $\le$ 500 
C)  1A + 4B $\le$ 300 
D)  40A + 30B $\le$ 500 
A)  1A + 4B $\le$ 500 
B)  5A + 2B $\le$ 500 
C)  1A + 4B $\le$ 300 
D)  40A + 30B $\le$ 500

Question 5

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 objective function to maximize profits for Heft Company?

Accepted Answer

A)  Minimize 5A + 2B 
B)  Maximize 1A + 4B 
C)  Maximize 40A + 30B 
D)  Minimize 40A + 30B 
A)  Minimize 5A + 2B 
B)  Maximize 1A + 4B 
C)  Maximize 40A + 30B 
D)  Minimize 40A + 30B

Question 6

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:   Required: 
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?

Accepted Answer

@#IMG-DLM& Produce 9

Question 7

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 objective function for this production situation is to:

Accepted Answer

A)  maximize £15A + £30B. 
B)  maximize £50A + £80B. 
C)  maximize £35A + £50B. 
D)  minimize £15A + £30B. 
A)  maximize £15A + £30B. 
B)  maximize £50A + £80B. 
C)  maximize £35A + £50B. 
D)  minimize £15A + £30B.

Question 8

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. What is the objective function for maximizing profits?

Accepted Answer

A)  Maximize £15A + £30B 
B)  Maximize £50A + £80B 
C)  Maximize £35A + £50B 
D)  Minimize £15A + £30B 
A)  Maximize £15A + £30B 
B)  Maximize £50A + £80B 
C)  Maximize £35A + £50B 
D)  Minimize £15A + £30B

Question 9

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 raw materials?

Accepted Answer

A)  £1A + £2B < 100 
B)  £4A + £2B < 100 
C)  £4A + £5B < 100 
D)  £4A + £5B < 300 
A)  £1A + £2B < 100 
B)  £4A + £2B < 100 
C)  £4A + £5B < 100 
D)  £4A + £5B < 300

Question 10

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

Accepted Answer

A)  £1,400. 
B)  £40,800. 
C)  £14,800. 
D)  £16,000. 
A)  £1,400. 
B)  £40,800. 
C)  £14,800. 
D)  £16,000.

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

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 objective function for this production situation is to:

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. What is the objective function for maximizing profits?

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

Introduction to Management Accounting

An Introduction to Cost Terms and Concepts

Cost Assignment

Accounting Entries for a Job Costing System

Process Costing

Joint and By-Product Costing

Income Effects of Alternative Cost Accumulation Systems

Cost-Volume-Profit Analysis

Measuring Relevant Costs and Revenues for Decision-Making

Activity-Based Costing

Pricing Decisions and Profitability Analysis

Decision-Making Under Conditions of Risk and Uncertainty

Capital Investment Decisions: Appraisal Methods

Capital Investment Decisions: the Impact of Capital Rationing, Taxation, Inflation and Risk

The Budgeting Process

Management Control Systems

Standard Costing and Variance Analysis 1

Standard Costing and Variance Analysis 2: Further Aspects

Divisional Financial Performance Measures

Transfer Pricing in Divisionalized Companies

Cost Management

Strategic Management Accounting

Cost Estimation and Cost Behaviour

Quantitative Models for the Planning and Control of Stocks

Filters

Exam 25: The Application of Linear Programming to Management Accounting

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

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 objective function for this production situation is to:

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. What is the objective function for maximizing profits?

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

Introduction to Management Accounting

An Introduction to Cost Terms and Concepts

Cost Assignment

Accounting Entries for a Job Costing System

Process Costing

Joint and By-Product Costing

Income Effects of Alternative Cost Accumulation Systems

Cost-Volume-Profit Analysis

Measuring Relevant Costs and Revenues for Decision-Making

Activity-Based Costing

Pricing Decisions and Profitability Analysis

Decision-Making Under Conditions of Risk and Uncertainty

Capital Investment Decisions: Appraisal Methods

Capital Investment Decisions: the Impact of Capital Rationing, Taxation, Inflation and Risk

The Budgeting Process

Management Control Systems

Standard Costing and Variance Analysis 1

Standard Costing and Variance Analysis 2: Further Aspects

Divisional Financial Performance Measures

Transfer Pricing in Divisionalized Companies

Cost Management

Strategic Management Accounting

Cost Estimation and Cost Behaviour

Quantitative Models for the Planning and Control of Stocks

Filters