Optimum solution, Managerial Accounting

Optimum Solution

From the stand point of implementing the LP solution, the mathematical classification of the variables as basic and non-basic is of no importance and should be totally ignored in reading the optimum solution. The variables not listed in the "basic" column necessarily have zero values. The rest have their values in the solution column.  In terms of the optimum solution of our example, we are interested primarily in the product mix of exterior and interior paint, that is, the decision variables XE and XI. From the optimum tableau we have the following summary:

Decision Variable        Optimum Value                    Decision
XE                                3 1/3                Produce 3 1/3 tons of exterior paint
X                                1 1/3                Produce 1 1/3 tons of interior paint
Z                                  12 1/3              Resulting profit is 12 2/3 thousand Shs

Posted Date: 12/7/2012 6:46:02 AM | Location : United States







Related Discussions:- Optimum solution, Assignment Help, Ask Question on Optimum solution, Get Answer, Expert's Help, Optimum solution Discussions

Write discussion on Optimum solution
Your posts are moderated
Related Questions
Significance points of Variance The following significant points must be kept in mind: Controllability:   Controllability should also influence the decision whether t

Explain the concepts of costs. A cost accountant is mainly concerned with the following cost concepts. 1. Concept of objectives: it is this concept that gives direction to


Describe the Limitations of management accounting: 1. Based on accounting information: the correctness and effectiveness of managerial decisions will depend upon the quality

Explain the terms - Cost object and Activities Cost object : it is an item for which cost measurement is required for example a product or a customer. Activities: these c

what do you debit and what do you credit in adjusting entry for prepaid rent?

Characteristics of product life cycle The major characteristics of life-cycle concept are as follows: 1) The products have finite live and pass by the cycle of development i

Intra company transfer pricing A company engaged in production may have several segments division or departments doing production jobs or manufacturing party or fully finished


Illustration of Coefficient of Determination The production manager of XYZ Company is concerned about the apparent fluctuation in efficiency and wants to determine how labour c