If the objective is to maximize profits in a linear programming problem, the coefficients of the variables in the objective function should be the
A)selling price per unit.
B)variable costs per unit.
C)contribution margin per unit.
D)fixed costs per unit.

Question

Quizplus · Accepted Answer

The contribution margin per unit, which is the selling price per unit minus the variable costs per unit, directly affects profit. Maximizing the contribution margin will therefore maximize profits, making it the correct coefficient for the variables in the objective function of a linear programming problem aimed at profit maximization.

If the Objective Is to Maximize Profits in a Linear