REVIEWER

Question 1

In a maximization problem, how is the optimal value of the objective function determined from the final simplex tableau?
It is the largest value in the last row
It is the smallest value in the solution column
It is the value in the bottom-right corner of the tableau
It is the sum of all coefficients in the last row

Answer 1

It is the value in the bottom-right corner of the tableau

Question 2

In the initial Simplex tableau, which column is selected as the pivot column?
The column with the largest positive coefficient in the constraints
The column corresponding to the variable with the most negative coefficient in the objective function row
The column with the smallest coefficient in the right-hand side column
The column with the highest slack variable coefficient

Answer 2

The column corresponding to the variable with the most negative coefficient in the objective function row

Question 3

Which of the following points is a solution to the inequality y>3x-5?
(0, -8)
(2, -6)
(5, -1)
(-1, 1)

Answer 3

(-1, 1)

Question 4

Which of the following conditions must be satisfied for an optimal solution to exist in a linear programming problem?
The feasible region must be empty
The feasible region must be bounded
The objective function must be quadratic
The constraints must be nonlinear

Answer 4

The feasible region must be bounded

Question 5

Which of the following properties of linear programming states that any increase or decrease in the value of a decision variable will result in a corresponding proportional increase or decrease in the objective function and constraints?
Divisibility
Additive
Multiplicative
Proportionality

Answer 5

Proportionality

Question 6

In a minimization problem, when does the Simplex Method stop?
When the RHS values are zero
When all entries in the last row are positive or zero
When a basic variable becomes negative
When all entries in the last row are negative

Answer 6

When all entries in the last row are positive or zero

Question 7

What is the first step after selecting the pivot element in the Simplex Method?
Divide the pivot row by the pivot element to make the pivot equal to 1
Ignore the pivot element and move to the next iteration
Multiply the entire tableau by the pivot element
Replace the pivot column with zeros

Answer 7

Divide the pivot row by the pivot element to make the pivot equal to 1

Question 8

What does an unbounded solution mean in the Simplex Method?
The objective function value can increase indefinitely
The problem has no feasible region
The problem has multiple optimal solutions
The problem has no solution

Answer 8

The objective function value can increase indefinitely

Question 9

If an LPP has more constraints than decision variables, what does it imply?
The problem is always infeasible
The problem must be solved using the graphical method
The problem has multiple solutions
The problem may have redundant constraints

Answer 9

The problem may have redundant constraints

Question 10

Which of the following will reduce the average waiting time in a queuing system?

Increasing the arrival rate (λ)
Increasing customer balking
Reducing the service rate (μ)
Adding more servers

Answer 10

Adding more servers

Question 11

The objective function of an LP transportation problem of shipping goods from a plant to a warehouse is:
min C = 7y11 + 7y12 + 14y13 + 8y21 + 4y22 + 9y23

14 units are needed to transport goods from P1 to W3.
It costs PHP 14.00 to transport goods from P1 to W3.
It costs PHP 14.00 to transport goods from P3 to W1.
14 units are needed to transport goods from P3 to W1.

Answer 11

It costs PHP 14.00 to transport goods from P1 to W3.

Question 12

Which of the following best describes the Vogel’s Approximation Method (VAM)?
A method that minimizes the total number of allocations
A heuristic method that gives a good initial feasible solution
A method that guarantees the optimal solution
A method that only works for balanced problems

Answer 12

A heuristic method that gives a good initial feasible solution

Question 13

The following assumptions are considered in the process of computing break-even analysis, except ______

Throughout the output level, sales price per unit is constant.
All the costs can be considered as variable costs.
Straight-line cost and revenue behavior.
Total fixed costs remain constant at all the output levels.

Answer 13

All the costs can be considered as variable costs.

Question 14

The MODI Method is best suited for ______

Assignment problems
Checking and improving an existing solution
Maximization problems
Finding the initial solution

Answer 14

Checking and improving an existing solution

Question 15

A queuing system where customers are served in the order they arrive is called _____.
First-In-First-Out (FIFO)
Random selection
Priority scheduling
Last-In-First-Out (LIFO)

Answer 15

First-In-First-Out (FIFO)

Question 16

The actual sales made over the break-even point, which generates profit is considered as the margin of safety.
Margin of Safety
Contribution Margin Per unit
Contribution Margin Ratio
Margin of Safety Ratio

Answer 16

Margin of Safety

Question 17

If a system has an infinite queue length, it means ______.
There is a limited number of customers
No service is provided
Customers may have to wait indefinitely
The queue is always empty

Answer 17

Customers may have to wait indefinitely

Question 18

If the arrival rate (λ) is greater than the service rate (μ), the system will_____.
Reach an optimal level
Become overloaded and never empty
Always remain empty
Remain stable

Answer 18

Become overloaded and never empty

Question 19

Which of the following methods is used for project scheduling?
CPM (Critical Path Method)
PERT (Program Evaluation and Review Technique)
All of these
Gantt Charts

Answer 19

All of these

Question 20

Which of the following statements is FALSE about the Least Cost Method?
It guarantees an optimal solution
It is more cost-effective than the Northwest Corner Rule
It considers the lowest transportation cost for allocation
It provides an initial feasible solution

Answer 20

It guarantees an optimal solution

Question 21

Which of the following is NOT a component of a queuing system?
Queue discipline
Service mechanism
Fixed cost structure
Arrival process

Answer 21

Fixed cost structure

Question 22

Contribution refers to the amount of sales revenue which is available to pay off the fixed cost of the project after meeting the variable cost.
True
False

Answer 22

True

Question 23

Markov Analysis is a method of analyzing the current behavior of some variable

to predict the future behavior of that same variable.

True
False

Answer 23

True

Question 24

In a queuing system, the term “queue discipline” refers to ____.
The total number of servers
The way customers arrive at the system
The speed of service
The order in which customers are served

Answer 24

The order in which customers are served

Question 25

PERT a modelling process used to predict project duration by analyzing which sequence of activities has the least amount of scheduling flexibility. True False

Answer 25

False

Question 26

In the Stepping Stone Method, a closed loop is formed by __________. Filling all cells Assigning values to the cheapest cost cells Selecting any random cells Alternating occupied and unoccupied cells

Answer 26

Alternating occupied and unoccupied cells

Question 27

A periodic state in a Markov Chain is one that has a probability of 1 of being reached eventually. True False

Answer 27

False

Question 28

______________ is the means to identify the effect of variation in sales volume on the cost, revenue and profitability of a project or a product. EXPECTED ANSWER: TWO WORDS BREAK EVEN ANALYSIS Break-Even Analysis break-even analysis Break-even analysis BREAK-EVEN ANALYSIS

Answer 28

Break-even analysis

Question 29

This ratio provides the percentage of the sales revenue generated from the project, which is available to meet its fixed cost. EXPECTED ANSWER: THREE WORDS

Answer 29

Contribution Margin Ratio

Question 30

A __________ is a mathematical system that experiences transitions from one state to another according to certain probabilistic rules. EXPECTED ANSWER: TWO WORDS

Answer 30

MARKOV CHAIN

Question 31

The expenses which are progressive with the increasing sales and production volume are called __________ EXPECTED ANSWER: TWO WORDS . VARIABLE COSTS Variable Costs variable costs

Answer 31

variable costs

Question 32

Those costs which remain the same throughout irrespective of the sales or revenue. EXPECTED ANSWER: TWO WORDS fixed costs Fixed Costs FIXED COSTS No answer text provided.

Answer 32

FIXED COSTS

Question 33

__________ is a method of analyzing the current behavior of some variable in an effort to predict the future behavior of that same variable. EXPECTED ANSWER: TWO WORDS

Answer 33

MARKOV ANALYSIS

Question 34

A __________ is that position where a business entity can recover its cost through the revenue it generates from the sales. EXPECTED ANSWER: TWO WORDS break even point Break-Even Point break-even point BREAK-EVEN POINT BREAK EVEN POINT

Answer 34

break-even point

Question 35

A ________ is a collection of tasks that must be completed in minimum time or at minimal cost. EXPECTED ANSWER: ONE WORD

Answer 35

PROJECT

Question 36

The ____________ depicts the percentage of contribution generated from the sales of the product. EXPECTED ANSWER: THREE WORDS

Answer 36

PROFIT VOLUME RATIO

Question 37

A furniture business has Fixed Costs of ₱90,000 and profit volume ratio of 50%. The actual sales revenue of the company is ₱250,000. If the target profit is ₱40,000, find the sales revenue required to achieve the target profit. ₱270,000 ₱260,000 ₱240,000 ₱180,000

Answer 37

₱260,000

Question 38

What is the Margin of Safety in break-even analysis? The variable cost percentage The total profit after break-even The percentage of fixed costs covered The difference between actual sales and break-even sales

Answer 38

The difference between actual sales and break-even sales

Question 39

A company has a selling price per unit of ₱80 and a variable cost per unit of ₱50. What is the Profit-Volume Ratio? 25% 37.5% 62.5% 40%

Answer 39

0.375

Question 40

If a company has a fixed cost of ₱50,000, a selling price per unit of ₱20, and a variable cost per unit of ₱10, what is the break-even quantity? 2,500 units 20,000 units 10,000 units 5,000 units

Answer 40

5,000 units

Question 41

A restaurant has an average of 12 customers dining at any given time. If the average customer spends 40 minutes in the restaurant, what is the restaurant’s customer arrival rate per hour? 15 customers/hour 20 customers/hour 18 customers/hour 30 customers/hour

Answer 41

18 customers/hour

Question 42

If the break-even sales revenue is ₱120,000 and actual sales revenue is ₱150,000, what is the margin of safety percentage? 20% 30% 25% 15%

Answer 42

0.2

Question 43

A company has a selling price per unit of ₱25, a variable cost per unit of ₱10, and fixed costs of ₱60,000. What is the break-even sales revenue? ₱180,000 ₱150,000 ₱120,000 ₱100,000

Answer 43

₱100,000

Question 44

Which of the following will reduce the break-even point? Decreasing the selling price Increasing the contribution margin per unit Increasing the variable cost Increasing fixed costs

Answer 44

Increasing the contribution margin per unit

Question 45

A furniture business has Fixed Costs of ₱90,000 and profit volume ratio of 50%. The actual sales revenue of the company is ₱250,000. If the target profit is ₱40,000, determine the margin of safety ratio. 28% 23% 33% 38%

Answer 45

0.28

Question 46

A company has fixed costs of ₱40,000, a contribution margin per unit of ₱20, and sells 3,000 units. What is the company's profit? ₱25,000 ₱15,000 ₱10,000 ₱20,000

Answer 46

₱20,000

Question 47

A company has a variable cost per unit of ₱12, and the P/V ratio is 60%. What is the selling price per unit? ₱30 ₱18 ₱15 ₱20

Answer 47

₱30

Question 48

A bank branch wants to analyze its customer service process using Little’s Law. On average, 20 customers arrive per hour, and at any given time, there are 10 customers in the branch. Based on Little’s Law, what is the average time a customer spends in the bank? 1 hour (60 minutes) 1.5 hours( 90 minutes) 2 hours (120 minutes) 0.5 hours(30 minutes)

Answer 48

0.5 hours(30 minutes)

Question 49

A company has a contribution margin of ₱15 per unit and a break-even sales quantity of 4,000 units. What is the total fixed cost? ₱40,000 ₱45,000 ₱50,000 ₱60,000

Answer 49

₱60,000

Question 50

A company wants to earn a target profit of ₱30,000. The fixed costs are ₱50,000, the variable cost per unit is ₱10, and the company plans to sell 8,000 units. What should be the selling price per unit? ₱17.50 ₱15 ₱25 ₱20

Answer 50

₱20

Question 51

A logistics company needs to distribute products from three warehouses (1, 2, and 3) to three stores (A, B, and C). The supply from each warehouse and demand at each store are balanced, meaning the total supply equals the total demand. EXPECTED ANSWER: WHOLE NUMBER AND NO NEED TO USE CURRENCY 1. What is the minimum transportation cost using Northwest Corner Rule? 420 2. What is the minimum transportation cost using Least Cost Method? [ Select ] 3. What is the minimum transportation cost using Vogel's Approximation Method? [ Select ]

Answer 51

Answer 1: 420 (pero dapat 400 lng kaso wala sa choices) Answer 2: 400 Answer 3: 400

Question 52

Using Northwest Corner Rule, the initial feasible solution is on the table below. Use the Stepping Stone Method to find the improved minimum transportation cost, if possible. EXPECTED ANSWER: WHOLE NUMBER AND NO NEED TO USE CURRENCY

Answer 52

3577