Question 1

Which of the following are components of a mathematical model for decision making?

Accepted Answer

A)  Decision variables. 
B)  An objective function. 
C)  Constraints. 
D)  Parameters. 
E)  All of the answer choices are correct. 
A)  Decision variables. 
B)  An objective function. 
C)  Constraints. 
D)  Parameters. 
E)  All of the answer choices are correct.

Question 2

A manager has determined that a potential new product can be sold at a price of $10.00 each. The cost to produce the product is $5.00, but the equipment necessary for production must be leased for $25,000 per year. What is the break-even point?

Accepted Answer

A)  2,500 units. 
B)  5,000 units. 
C)  7,500 units. 
D)  10,000 units. 
E)  25,000 units. 
A)  2,500 units. 
B)  5,000 units. 
C)  7,500 units. 
D)  10,000 units. 
E)  25,000 units.

Question 3

Which of the following is a mathematical expression that gives the measure of performance for the problem?

Accepted Answer

A)  Decision variable. 
B)  Parameter. 
C)  Objective function. 
D)  Constraint. 
E)  None of the answer choices are correct. 
A)  Decision variable. 
B)  Parameter. 
C)  Objective function. 
D)  Constraint. 
E)  None of the answer choices are correct.

Question 4

When evaluating a project to determine the break-even quantity, the advantage of a spreadsheet model is?

Accepted Answer

A)  Users can't see the formulas used. 
B)  Calculations are always rounded to the nearest integer. 
C)  The analyst can use Excel's "BREAKEVEN" function to perform the calculation 
D)  A number of different estimates can be quickly evaluated once the model is constructed. 
E)  There are no advantages to spreadsheet modeling of break-even analysis. 
A)  Users can't see the formulas used. 
B)  Calculations are always rounded to the nearest integer. 
C)  The analyst can use Excel's "BREAKEVEN" function to perform the calculation 
D)  A number of different estimates can be quickly evaluated once the model is constructed. 
E)  There are no advantages to spreadsheet modeling of break-even analysis.

Question 5

At the break-even point, management is indifferent between producing a product and not producing it.

Accepted Answer

A) True 
 B)False

Question 6

Predictive analytics is the process of using data to.

Accepted Answer

A)  analyze trends. 
B)  predict what will happen in the future. 
C)  determine the break-even point. 
D)  solve linear programming problems. 
E)  determine the best course of action for the future. 
A)  analyze trends. 
B)  predict what will happen in the future. 
C)  determine the break-even point. 
D)  solve linear programming problems. 
E)  determine the best course of action for the future.

Question 7

You have decided to start a vending machine business. A local store has space available for your machine but wants to charge you an annual fee to use the space. You estimate that you can sell 5,000 cans of soda each year. You sell a can of soda for $1.25, which allows you a profit of $0.50 per can. What is the most you would spend to lease the space for one year?

Accepted Answer

A)  $1,000. 
B)  $2,500. 
C)  $5,000. 
D)  $7,500. 
E)  $10,000. 
A)  $1,000. 
B)  $2,500. 
C)  $5,000. 
D)  $7,500. 
E)  $10,000.

Question 8

A group is planning a conference. The cost to rent the space is $1,000. Each attendee will be charged $50.00 to attend, but the group provides a lunch (the group will pay $10.00 for each lunch). What is the break-even point?

Accepted Answer

A)  20 attendees. 
B)  25 attendees. 
C)  30 attendees. 
D)  35 attendees. 
E)  40 attendees. 
A)  20 attendees. 
B)  25 attendees. 
C)  30 attendees. 
D)  35 attendees. 
E)  40 attendees.

Question 9

In order to produce a new product, a firm must lease equipment at a cost of $25,000 per year. The managers feel that they can sell 10,000 units per year at a price of $15.00. What is the highest variable cost that will allow the firm to at least break even on this project?

Accepted Answer

A)  $12.50. 
B)  $13.50. 
C)  $14.50. 
D)  $15.50. 
E)  $16.50. 
A)  $12.50. 
B)  $13.50. 
C)  $14.50. 
D)  $15.50. 
E)  $16.50.

Question 10

A constraint is an algebraic variable that represents a quantifiable decision to be made.

Accepted Answer

A) True 
 B)False

Question 11

A cost that varies with the production volume would be a variable cost.

Accepted Answer

A) True 
 B)False

Question 12

A cost that does not vary with the production volume would be a fixed cost.

Accepted Answer

A) True 
 B)False

Question 13

Enlightened future managers should know which of the following?

Accepted Answer

A)  The power and relevance of management science. 
B)  When management science can and cannot be applied. 
C)  How to apply the major techniques of management science. 
D)  How to interpret the results of a management science study. 
E)  All of the answer choices are correct. 
A)  The power and relevance of management science. 
B)  When management science can and cannot be applied. 
C)  How to apply the major techniques of management science. 
D)  How to interpret the results of a management science study. 
E)  All of the answer choices are correct.

Question 14

Which of the following statements about the break-even quantity is FALSE?

Accepted Answer

A)  When sales are equal to the break-even point, profit will be zero. 
B)  When sales exceed the break-even point, profits will be positive. 
C)  When sales are below the break-even point, profits will be negative. 
D)  Once sales exceed the break-even point, profits continue to increase as sales increase. 
E)  The total revenue and total cost are equal at the point where profits are maximized. 
A)  When sales are equal to the break-even point, profit will be zero. 
B)  When sales exceed the break-even point, profits will be positive. 
C)  When sales are below the break-even point, profits will be negative. 
D)  Once sales exceed the break-even point, profits continue to increase as sales increase. 
E)  The total revenue and total cost are equal at the point where profits are maximized.

Which of the following are components of a mathematical model for decision making?

A manager has determined that a potential new product can be sold at a price of $10.00 each. The cost to produce the product is $5.00, but the equipment necessary for production must be leased for $25,000 per year. What is the break-even point?

Which of the following is a mathematical expression that gives the measure of performance for the problem?

When evaluating a project to determine the break-even quantity, the advantage of a spreadsheet model is?

At the break-even point, management is indifferent between producing a product and not producing it.

Predictive analytics is the process of using data to.

A group is planning a conference. The cost to rent the space is $1,000. Each attendee will be charged $50.00 to attend, but the group provides a lunch (the group will pay $10.00 for each lunch). What is the break-even point?

In order to produce a new product, a firm must lease equipment at a cost of $25,000 per year. The managers feel that they can sell 10,000 units per year at a price of $15.00. What is the highest variable cost that will allow the firm to at least break even on this project?

A constraint is an algebraic variable that represents a quantifiable decision to be made.

A cost that varies with the production volume would be a variable cost.

A cost that does not vary with the production volume would be a fixed cost.

Enlightened future managers should know which of the following?

Which of the following statements about the break-even quantity is FALSE?

Linear Programming: Basic Concepts

Linear Programming: Formulation and Applications

The Art of Modeling With Spreadsheets

What-If Analysis for Linear Programming

Network Optimization Problems

Using Binary Integer Programming to Deal With Yes-Or-No Decisions

Nonlinear Programming

Decision Analysis

Forecasting

Queueing Models

Computer Simulation: Basic Concepts

Computer Simulation With Analytic Solver

Filters

Exam 1: Introduction

Which of the following are components of a mathematical model for decision making?

A manager has determined that a potential new product can be sold at a price of $10.00 each. The cost to produce the product is $5.00, but the equipment necessary for production must be leased for $25,000 per year. What is the break-even point?

Which of the following is a mathematical expression that gives the measure of performance for the problem?

When evaluating a project to determine the break-even quantity, the advantage of a spreadsheet model is?

At the break-even point, management is indifferent between producing a product and not producing it.

Predictive analytics is the process of using data to.

A group is planning a conference. The cost to rent the space is $1,000. Each attendee will be charged $50.00 to attend, but the group provides a lunch (the group will pay $10.00 for each lunch). What is the break-even point?

In order to produce a new product, a firm must lease equipment at a cost of $25,000 per year. The managers feel that they can sell 10,000 units per year at a price of $15.00. What is the highest variable cost that will allow the firm to at least break even on this project?

A constraint is an algebraic variable that represents a quantifiable decision to be made.

A cost that varies with the production volume would be a variable cost.

A cost that does not vary with the production volume would be a fixed cost.

Enlightened future managers should know which of the following?

Which of the following statements about the break-even quantity is FALSE?

Linear Programming: Basic Concepts

Linear Programming: Formulation and Applications

The Art of Modeling With Spreadsheets

What-If Analysis for Linear Programming

Network Optimization Problems

Using Binary Integer Programming to Deal With Yes-Or-No Decisions

Nonlinear Programming

Decision Analysis

Forecasting

Queueing Models

Computer Simulation: Basic Concepts

Computer Simulation With Analytic Solver

Filters