Which of the following is considered a decision variable in the production mix problem of maximizing profit?
A)the amount of raw material to purchase for production
B)the number of product types to offer
C)the selling price of each product
D)the amount of each product to produce
E)None of the above

Question

Quizplus · Accepted Answer

The amount of each product to produce is a decision variable in the production mix problem of maximizing profit as it determines the allocation of resources and thereby affects the profit. The amount of raw material to purchase and the selling price of each product are either given or determined based on market analysis, competition, and demand. The number of product types to offer is also a strategic decision that involves factors beyond production, such as market segmentation and differentiation.

Which of the Following Is Considered a Decision Variable in the Production