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

Question

Quizplus · Accepted Answer

Decision variables are the values that the decision-maker manipulates in order to make choices. In the production mix problem of maximizing profit, the decision variables are the amounts of each product to produce, as this directly affects the overall profit that can be earned. The amount of raw material to purchase for production is not a decision variable as it is a constraint in the problem. The number of product types to offer and the selling price of each product can be decision variables, but they are not the primary decision variables in this problem.

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