Marginal profit or cost, Managerial Accounting

Assignment Help:

Maximum change in marginal Profit or Cost

Just as we did in studying the permissible ranges for changes in resources, we are also interested in studying the permissible ranges for changes in marginal profits (or costs). We have seen graphically that the objective function coefficients can change within limits without affecting the optimum values of the variables (the optimum value of Z will change, though).

In the present situation, as in the case of resource changes, the objective equation is never used as a pivot equation. Thus, any changes in the coefficients of the objective function will affect only the objective equation in the optimum tableau. This means that such changes can have the effect of making the solution non-optimal. Our goal is to determine the range of variation for the object coefficients (one at a time) for which the current optimum (solution) remains unchanged.


Related Discussions:- Marginal profit or cost

Calculate the total revenue obtainable when the market clear, Question: ...

Question: (a) (I) The following equations relate to the market conditions for pullovers at a given point of time: Demand Function: Q d = 1200 - P Supply Function: Q s

Master Budget, What is a pro forma financial statement and how does it rela...

What is a pro forma financial statement and how does it relate to the master budget?

State programmed budget, Explain about Programmed budget It having expe...

Explain about Programmed budget It having expects revenues and cost of various products or projects that are termed as the main programmers of the firm. Such a budget can be pr

Explain about office and administrative expenses, Explain about Office and ...

Explain about Office and administrative expenses These expenses are not related to factory but they pertain to the management and administration of the business. Such expenses

Mgt acc., companyXYZusesthe job oder costing system.

companyXYZusesthe job oder costing system.

Break Even Sales in Units, Kibble Company had the following functional inco...

Kibble Company had the following functional income statement for the month of July 2011: Kibble Company Functional Income Statement For the Month Ending July 31, 2011 Sales ($40 x

Explanation of objectives of budgetary control system, Problem 1 Manage...

Problem 1 Management accounting is sensitive to management needs; however, it assists the management and does not replace it. Write down in detail the scope of management accou

Motives for holding cash, The firm's require holding cash may be attributed...

The firm's require holding cash may be attributed to the three motives specified below: The transaction motive The precautionary motive The speculative motive.

Evaluation of the regression model, EVALUATION OF THE REGRESSION MODEL ...

EVALUATION OF THE REGRESSION MODEL The regression equation calculated above was based on the assumption that cost varied with the units produced. However, a number of different

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd