Quantitative Methods for Accountants Math Problem

Quantitative Methods for Accountants - Math Problem ExampleNegative tush legal injury for swerve obligation (-3) indicates that each additional unit of product A to be produced according to the contract provision will have 3-equivalent negative influence on the regard as of the bearing function. Reduction of the fare of product A to be produced and sold will have the opposite word effect.Selling toll - (Labour fourth dimension required * shadow price for Labour time - form time required * shadow price for Machine time - Raw material required * shadow price for Raw material - Changes in contract amount* shadow price for contract) =... Shadow price for raw materials (4) indicates that each additional unit of raw material bought or used will have 4-equivalent positive (negative correspondingly) effect on the objective function.Negative shadow price for contract obligation (-3) indicates that each additional unit of product A to be produced according to the contract provision will have 3-equivalent negative influence on the cherish of the objective function. Reduction of the amount of product A to be produced and sold will have the opposite effect.d) The impact of producing Product D on the total contribution to profit can be deliberate as indicatedSelling price - (Labour time required * shadow price for Labour time - Machine time required * shadow price for Machine time - Raw material required * shadow price for Raw material - Changes in contract amount* shadow price for contract) == 55 - (6*0 + 6*0 + 3*4 - 0*(-3)) = 55 - 12 = 43 As the calculated value is positive and quite significant the company also should produce product