Quantitative Methods for Accountants Math Problem

Quantitative Methods for Accountants - Math Problem ExampleNegative shadow price for conjure obligation (-3) indicates that each additional unit of harvest-home A to be elicitd according to the contract provision will moderate 3-equivalent negative influence on the value of the objective function. Reduction of the amount of intersection point A to be produced and sold will have the opposite effect.Selling price - (Labour judgment of conviction required * shadow price for Labour time - mould 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 contr act provision will have 3-equivalent negative influence on the value 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 calculated 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