QUESTION: 17

JRL manufactures two products from different combinations of the same resources.

Unit selling prices and unit cost details for each product are as follows:

Identify, using graphical linear programming, the weekly production schedule for products J and L that will maximize the profits of JRL during the next four weeks.

The solution from the graph is to produce 330 units of J and 280 units of (A simplex solution shows the true optimum to be 332.333 units of J and 283.333 units of)
The solution from the graph is to produce 310 units of J and 280 units of (A simplex solution shows the true optimum to be 308.333 units of J and 283.333 units of)
The solution from the graph is to produce 330 units of J and 290 units of (A simplex solution shows the true optimum to be 332.333 units of J and 293.333 units of)
The solution from the graph is to produce 315 units of J and 290 units of (A simplex solution shows the true optimum to be 316.333 units of J and 293.333 units of)
The solution from the graph is to produce 312 units of J and 295 units of (A simplex solution shows the true optimum to be 312.333 units of J and 294.999 units of)
The solution from the graph is to produce 317 units of J and 270 units of (A simplex solution shows the true optimum to be 316.666 units of J and 269.666 units of)

Answer(s): B

Reveal Solution Next Question

QUESTION: 18

JRL manufactures two products from different combinations of the same resources. Unit selling prices and unit cost details for each product are as follows:

* Refer to your answer in the previous question.

The optimal solution to the previous question shows that the shadow prices of skilled labour and direct material A are as follows:

•Skilled labour $ Nil Direct Material A $11.70
•Explain the relevance of these values to the management of JRL.

Select ALL the true statements.

The shadow price equals the additional contribution that would be earned from one extra unit of a scarce resource.
In a situation such as this, where a number of resources are scarce, the shadow price of any particular scarce resource will depend on whether or not the resource is not binding.
The shadow price for skilled labour is NIL because although there is a shortage of skilled labour it does have a constraining effect on output of JR as other resources are more scarce.
Since material A is one of the binding constraints, if the availability of material A could be increased by one unit, this would change the optimal plan.
The decrease in contribution as a result of this change is the value of the shadow price of material A. The shadow price thus represents the maximum premium that should be paid for an additional unit of material A.

Answer(s): A,D

Reveal Solution Next Question

QUESTION: 19

A master budget comprises the...

budgeted income statement and budgeted cash flow statement only.
budgeted income statement and budgeted balance sheet only.
budgeted income statement and budgeted capital expenditure only
budgeted income statement, budgeted balance sheet and budgeted cash flow statement only.

Answer(s): D

Reveal Solution Next Question

QUESTION: 20

A company’s management is considering investing in a project with an expected life of 4 years. It has a positive net present value of $180,000 when cash flows are discounted at 8% per annum. The project’s cash flows include a cash outflow of $100,000 for each of the four years. No tax is payable on projects of this type.

The percentage increase in the annual cash outflow that would cause the company’s management to reject the project from a financial perspective is, to the nearest 0.1%:

54.3%
45.0%
55,6%
184.0%

Answer(s): A

Reveal Solution Next Question

Free CIMAPRO15-P01-X1-ENG Exam Braindumps (page: 5)

QUESTION: 17

QUESTION: 18

QUESTION: 19

QUESTION: 20