Exam 1: Management Science

A bed-and-breakfast breaks even every month if they book 30 rooms over the course of a month. Their fixed cost is $6000 per month and the revenue they receive from each booked room is $180. What is their variable cost per occupied room?

A management science solution can be either a recommended decision or information that helps a manager make a decision

A ________ is a functional relationship including variables, parameters, and equations.

Managers utilize spreadsheets to conduct their own analyses in management science studies.

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

In general, an increase in price increases the break-even point if all costs are held constant.

A typical objective function might be written as 3S + 2R + 5Z ≤ 20.

Electronic data interchange (EDI) is a type of decision support system.

Management scientists use the terms "data" and "information" interchangeably--that is, the two terms mean the same thing

The break-even point is the volume that equates total revenue with total cost.

EKA manufacturing company produces part #2206 for the aerospace industry. The unit production cost of part #2206 is $3. The fixed monthly cost of operating the production facility is $3000. Next month's demand for part #2206 is 200 units. How much should the company charge for each unit of part #2206 to break even?

A manager of the cereal bar at the college campus has determined that the profit made for each bowl of Morning Buzz cereal sold, x, is equal to: Z = $4x - 0.5x. Each bowl of Morning Buzz weighs 6 ounces, and the manager has 12 lbs (192 ounces) of cereal available each day, which can be written as the constraint, 6x ≤ 192. What maximum profit will be made from Morning Buzz if it is all sold in one day?

Variable cost

The components of break-even analysis are

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. Develop an objective function that would minimize the total cost.

A production process requires a fixed cost of $50,000. The variable cost per unit is $25 and the revenue per unit is projected to be $45. Find the break-even point.

A production process requires a fixed cost of $50,000. The variable cost per unit is $25 and the revenue per unit is projected to be $45. Write a mathematical expression for total profit.

Linear mathematical programming techniques assume that all parameters in the models are

Classification of management science techniques does not recognize

If fixed costs decrease, but variable cost and price remain the same, the break-even point