If the coefficient for Activity 2 in the objective function changes to $400,then the objective function value:
A)will increase by $7,500
B)will increase by $2,750
C)will increase by $100
D)will remain the same
E)can only be discovered by resolving the problem

Question

If the coefficient for Activity 2 in the objective function changes to $400,then the objective function value:
A)will increase by $7,500 
B)will increase by $2,750 
C)will increase by $100 
D)will remain the same 
E)can only be discovered by resolving the problem

Quizplus · Accepted Answer

The increase in the coefficient of Activity 2 from $350 to $400 will increase the contribution of Activity 2 to the objective function by $50 per unit. Since the activity level for Activity 2 is 55 units, the total increase in objective function value will be 55 x $50 = $2,750. Therefore, the correct choice is B.

If the Coefficient for Activity 2 in the Objective Function