Linear programming is a tool that maximizes total contribution margin of a mix of products with multiple constraints.

Question

Quizplus · Accepted Answer

Linear programming is commonly used in operations research to optimize the allocation of resources and maximize a specific objective (such as profit, revenue or efficiency) subject to various constraints. In the context of product mix decisions, linear programming can be used to determine the optimal blend of products that will generate the highest contribution margin, taking into account factors such as product demand, production capacity, resource availability, and market conditions. Therefore, the statement "Linear programming is a tool that maximizes total contribution margin of a mix of products with multiple constraints" is true.

Linear Programming Is a Tool That Maximizes Total Contribution Margin