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Ne4ueva [31]
3 years ago
9

The shadow price measures, per unit increase in the right hand side of the constraint, Select one: a. the change in the value of

the optimal solution. b. the increase in the value of the optimal solution. c. the decrease in the value of the optimal solution. d. the improvement in the value of the optimal solution.
Business
1 answer:
MA_775_DIABLO [31]3 years ago
7 0

Answer:

A. the change in the value of the optimal solution.

Explanation:

  • A shadow pricing is associated with each constraint of the model and is the instantaneous changes that occur in the objective model of the optimal solution that is obtained by changing the right-hand side constrained by one unit and a reduced cost is associated with each variable of the model. Also referred to  as a monetary values that is assigned to the current unknowable or difficult to calculate costs.
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Effect on income=  $2,500 increase

Explanation:

Giving the following information:

Contribution margin= $44

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Effect on income= increase in total contribution margin - increase in fixed costs

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The table below gives information on bottled water in Florida. As you would expect, the demand for water is higher than normal d
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Answer:

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2 years ago
michael was on the abc accounting firm's audit team for the rasmussen corporation audit. rasmussen's officers were so impressed
nirvana33 [79]

In order to preserve independence, Michael must "Remove himself from the engagement as he considers the offer." (Option B). It is to be noted that this is an internal control problem.

<h3>What is Independence in this case?</h3>

The absence of situations that jeopardize the internal audit activity's capacity to carry out internal audit tasks objectively is called Independence.

Practically, independence is achieved by ensuring that the internal audit activity has no management control for any of the organization's non-audit functions that are subject to internal audit assessments, and by distancing the internal audit activity's management from the functional oversight of the organization's senior management.

Learn more about internal control:
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Full Question:

Michael was on the ABC Accounting Firm's audit team for the Rasmussen Corporation audit. Rasmussen's officers were so impressed with Michael that they offered him a job as Director of Internal Audit at Rasmussen. What should Michael do in order to preserve independence?

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