Exam 1: Management Science

If variable costs increase, but price and fixed costs are held constant, the break-even point will decrease.

Students are organizing a "Battle of the Bands" contest. They know that at least 100 people will attend. The rental fee for the hall is $150 and the winning band will receive $500. In order to guarantee that they break even, how much should they charge for each ticket?

Management science techniques include ________ techniques, models that are represented as diagrams, presenting a pictorial representation of the system being analyzed.

________ techniques provide results that contain uncertainty, unlike mathematical programming techniques which are deterministic.

There is considerable overlap in the scientific method and management science techniques. Which of the following steps is shared between them?

A technique that assumes certainty in its solution is referred to as

The term "sensitivity analysis" refers to testing how a problem solution reacts to changes in one or more of the model parameters.

A baker uses organic flour from a local farmer in all of his baked goods. For each batch of bread (x1), he uses 4 pounds of flour. For a batch of cookies (x2), he uses 3 pounds, and for a batch of muffins (x3) he uses 2 pounds. The local farmer can supply him with no more than 24 pounds per week. The constraint that represents this condition is:

The purpose of break-even analysis is to determine the number of units of a product to sell that will

A script writer has received an advance against royalties of $10,000. The royalty rate is $2 for every performance in the U.S., and $3 for every performance outside the U.S. Define variables for this problem.

Which one of the following management science methods is not a probabilistic technique?

A variable is a value that is usually a coefficient of a parameter in an equation.

A manufacturer buys peas for vegetable pies from two cooperatives. The price per unit is $6 from cooperative A and $5.50 per unit from cooperative B. The manufacturer needs at least 12,000 units of peas. Cooperative A can supply up to 8000 units, and cooperative B can supply at least 6000 units. Develop constraints for these conditions.

A manufacturer buys peas for vegetable pies from two cooperatives. The price per unit is $6 from cooperative A and $5.50 per unit from cooperative B. Define variables that would tell how many units to purchase from each source.

Fixed costs depend on the number of items produced.

It costs $50,000 to start a production process. Variable cost is $25 per unit and revenue is $45 per unit. What is the break-even point?

The first step of the management science process is to define the problem.

The ________ is the volume that equates total revenue with total cost.

________ involves determining the functional relationship between variables, parameters, and equations.

A newly opened bed-and-breakfast projects the following: Monthly fixed costs $8000 Variable cost per occupied room per night $40 Revenue per occupied room per night $165 How many rooms would have to be occupied per month in order to break even?