CIMA Management Accounting P1 Question # 78 Topic 8 Discussion

CIMA Management Accounting P1 Question # 78 Topic 8 Discussion

P1 Exam Topic 8 Question 78 Discussion:
Question #: 78
Topic #: 8

The simplex method has been used to determine the optimum output of products P, Q, R and S with constraints on resources J, K and L.

In the final simplex tableau, the figure in the product R row and the column for slack variable K is 80.

Which of the following statements is correct?


A.

For each additional unit of resource K available, the contribution would increase by $80.


B.

For each additional unit of resource K available, the output of product R would increase by 80 units.


C.

For each additional unit of product R produced, 80 additional units of resource K would be required.


D.

In the optimum solution, 80 units of resource K are unused.


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