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
Material usage variance Difference among standard quantity of material and actual quantity used is the material usage variance. This variance arises due to: Economic use of

How marginal costing would improve the problems faced in absorption costing on manipulation of profits.

Review the roles of management accounting within a company. 1.What is the most important role of management accounting? 2.How is that different than financial accounting? 3.What is

Competition oriented pricing policy Most companies fix the price of their products after a careful consideration of the competitor's price structure. Deliberate policy may be f

Service time-probability distribution curve A common example is that service times follow an exponential probability distribution i.e. y=e -x Service channels - t

A manufacturing  company  needs  2500 units  of a particular component every  year. The  company buys  it at the rate of Rs. 30 per  unit.  The order processing cost for this part

During 2010, Jackson Company estimated that its manufacturing employees would work 80,000 direct labor hours. During the year the company actually worked 75,000 direct labor hours.

when assessing Market Value of common stock, is the "market value" the market value when the company sold the stock or the current market value?

Exercises 2-1, 2-2, 2-3, 2-4 Problem 2-14 I didn’t write every question down out of the book just questions 2-1, and 2-2. Exercise 2-1 classifying manufacturing cost. Your boat,

Capital gearing ratio  The term capital gearing is used to describe the relation ship between equity share capital including reserves and surplus to preference share capital a