An optimization analysis finds the optimum value for a target variable by repeatedly changing other variables, subject to specified constraints. What can a manager achieve by changing revenue and cost variables in an optimization analysis?
A) Calculate the highest potential profits
B) Calculate employee benefit payments
C) Use this as an extension for a digital dashboard
D) Create production schedules

Question

Quizplus · Accepted Answer

By changing revenue and cost variables in an optimization analysis, a manager can calculate the highest potential profits, as these variables directly impact the profit equation.

An Optimization Analysis Finds the Optimum Value for a Target