In a linear program, with the decision variables corresponding to level of sales of three products, and the objective of maximizing total contribution, selling price may be used as objective function coefficients even if the net contribution per unit is given.

Question

Quizplus · Accepted Answer

The objective function coefficients in a linear program should be the net contribution per unit, not the selling price, to accurately reflect the profit maximization goal.

In a Linear Program, with the Decision Variables Corresponding to Level