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Certified Internal Auditor Exam Questions 646–650 (page: 131)

Updated On: 9-Feb-2026

The feasible solution region is bounded by the lines connecting points

  1. 3, 4, 6, and 7.
  2. I, 5, 6, and 8.
  3. 2, 4, , , and 8.
  4. 3, E. 6, and 7.

Answer(s): A

Explanation:

A model consisting of a system of functions may be used to optimize an objective function. If the functions in the model are all linear, the model is a linear programming model. Linear programming is a technique to determine optimal resource allocation. Several solution methods are available to solve linear programming problems. The graphical method, the easiest technique, is limited to simple problems. Here, the graph consists of three lines, each representing a production constraint. The lines connecting points , 4, 6, and 7 bound the feasible solution region. Product mikes of and Y that lie outside this boundary cannot be produced and/or sold because the demand constraint line , 4), the labor constraint line 4, 6), and the material constraint line 6, 7) are binding. A company produces two products, and Y, which use material and labor as inputs. Fixed amounts of labor and material are available for
production each month In addition. the demand for product Y each month is limited: product has no constraint an the number of units that can be sold. A graphical depiction of these production and demand constraints is presented in the opposite column.



If a series of profit lines for and Y are drawn on the graph, the mix of G and Y that will result in the maximum profit can be determined from

  1. The last point in the feasible solution region touched by a profit line.
  2. Any point on the boundary of the feasible solution region touched by a profit line.
  3. The first paint an the feasible solution region boundary that intersects a profit line.
  4. Any point on the demand constraint that intersects a profit line.

Answer(s): A

Explanation:

A profit line has negative slope because the profit from sales of one product increases as the profit from sales of the other product declines. Moving the profit line rightward while maintaining its slope) to the last paint in the feasible region determines the solution.



One drawback of business process reengineering BPR), sometimes referred to as business process analysis, is

  1. Improved efficiency in the business processes analyzed.
  2. Excess of cast over the benefit.
  3. Reduction of operational efficiency.
  4. Employee resistance to change.

Answer(s): D

Explanation:

Business process reengineering BPR), or business process analysis, involves process innovation and process redesign. Instead of improving existing procedures, it finds new ways of doing things. One major drawback of BPR is that employees may be resistant due to fear of layoffs, being replaced, or insecurity about new required skills or tasks that the employee now has to perform.



Heniser Pet Foods manufactures two products, X. and Y. The unit contribution margins for Products X. and Y are US $30 and US $50, respectively. Each product uses Materials A and A. Product uses 6 pounds of Material A and 12 pounds of Material B. Product Y uses 12 pounds of Material A and 8 pounds of Material B. The company can purchase only 1, 200 pounds of Material A and 1, 760 pounds of Material B. The optimal mix of products to manufacture is

  1. 146 units of and 0 units of Y.
  2. 0 units of X and 100 units of Y.
  3. 120 units of and 40 units of Y.
  4. 40 units of X. and 120 units of Y.

Answer(s): C

Explanation:

Linear programming is a technique used to maximize a contribution margin function or to minimize a cost function, subject to constraints such as scarce resources or minimum/maximum levels of production. Thus, linear programming is often used for planning resource allocations. In this problem, the equation to be maximized, called the objective function, is: U3 $30)K+ $50Y. This equation is to be maximized subject to the constraints on materials. The two constraint functions are:
Material A: 6X + 12Y < 1, 200
Material B: I 2X + 8Y < 1, 760
One way to solve this problem is to graph the constraint lines and determine the feasible area. The optimal production level is at an extreme point within the feasible area. The graph shows that a production level of 120 units of and 40 units of Y is a feasible production level that maximizes the contribution margin.



Dale has 20 days to complete production of an order for an important customer. The customer wants 96 units of product that may be painted either red or white. The red units can be produced at a rate of 4 per day. The white units, because of a different quality of paint, can be produced at a rate of 7 per day. The materials for the red units cost US $80 each, while the white units cost US $120 each. Dale wants to keep costs at a minimum. What is the constraint that expresses the number of units to be produced?

  1. 4R + 7W = 20
  2. R 4) + W = 7) <20
  3. R + W = 20
  4. 4R + 7W = 96

Answer(s): B

Explanation:

The constraint function that expresses the number of units to be produced is R + W = --I 96, but that is not one of the answer choices. Another constraint is that the total quantities of red R) and white W) units must be produced in 20 or fewer days at a rate of 4 red units per day and 7 white units per day. Thus, the time constraint is R - 4) + W - 7) 20.



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