Optimum solution, Managerial Accounting

Assignment Help:

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


Related Discussions:- Optimum solution

Make or buy, The Rohr Company’s old equipment for making subassemblies is w...

The Rohr Company’s old equipment for making subassemblies is worn out. The company is considering two courses of action: (a) Completely replacing the old equipment with new equipme

Accounting cycle, Accounting Cycle is the name given to the combined proces...

Accounting Cycle is the name given to the combined process of recording and processing the accounting proceedings of a company. The series of steps start when a transaction takes p

Activity based costing, Activity Based Costing (ABC) differs from Absorptio...

Activity Based Costing (ABC) differs from Absorption Costing (AC) in the manner in which overheads are charged to units. ABC charges overheads to units based on their proportion

Inappropriate standards-implementation breakdown, Inappropriate standards (...

Inappropriate standards (or targets): This is a problem arising from deficiencies in planning. If not enough time and resources are devoted to setting accurate standards in th

Explain activity based costing versus traditional costing, Activity based c...

Activity based costing versus traditional costing Following are the main differences between activity based costing system and traditional costing system: Explain  1) Und

[email protected], Why might managers favour this ABC system instea...

Why might managers favour this ABC system instead of the older system that allocated all MOH costs on the basis of direct? labour?

Prepare a fixed budget and a flexible budget, Question: A company has b...

Question: A company has budgeted to produce and sell 10,000 units of a product, the selling price and the variable cost per unit of which is Rs 20 and Rs 12 respectively. Fixe

Explain short term budgets, Explain Short term budgets Short term budge...

Explain Short term budgets Short term budgets: these budgets are generally for one or two years and are in the form of monetary terms. The consumer's good industries like su

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