Solve problem by first finding the dual and then using the simplex algorithm. Minimize (6) subject...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Solve problem by first finding the dual and then using the simplex algorithm. Minimize (6) subject to c = 225y + 180y2 - 8y + y2 32 7y1+ 4y22 112 1 + 54 y, y 0. (ii) Find the critical points at which each of the following average cost AC functions is minimized. Check the second-order conditions on your own. (4) (a) AC = 302 180 + 585 (b) AC = 2.2502 27Q + 768 You are given an option of three lottery prizes: 1. $28387.30 now with $68281.33 in 5 years, 2. A payment each year of $26009.21 beginning in 1 year and ending after 4 payments, 3.6 payments half a year apart, each of $15210.33 with the first payment now. The current rate of interest is 3.98% compounded semi-annually. What is the value of the second option in today's dollars? Answer. Check 4 You are given an option of three lottery prizes: 1. $28387.30 now with $68281.33 in 5 years, 2. A payment each year of $26009.21 beginning in 1 year and ending after 4 payments, 3.6 payments half a year apart, each of $15210.33 with the first payment now. The current rate of interest is 3.98% compounded semi-annually. What is the value of the third option in today's dollars? Answer. A firm is developing a TV advertising campaign. Development costs (fixed costs) are $ 150,000 and the firm must pay $ 15,000 per minute for TV spots. The firm estimates that for each minute of advertising additional sales of $ 70,000 results. Out of this $ 70,000, $ 47,500 is absorbed to cover the variable cost of producing the items and $ 15,000 must be used to pay for the minutes of advertising. Any remainder is the contribution to fixed cost & profit. a) How many minutes of advertising are necessary to recover the development costs of the advertising campaign? b) If the firm uses 15-one minutes spots of advertising on the TV, determine the total revenue, total costs (production & advertising), and total profit (or loss) resulting from this campaign. Annette has just inherited $180,000. She invests this money at a rate of return of 5.94% per year compounded quarterly. After some period of time, she purchases an annuity that pays $2833 at the beginning of each month for 15 years. How much must be in the account on the date of the first payment in order to pay for this annuity? Answer $401782.60 The correct answer is: $ 339307.99 Annette has just inherited $180,000. She invests this money at a rate of return of 5.94% per year compounded quarterly. After some period of time, she purchases an annuity that pays $2833 at the beginning of each month for years. W Investing the $180,000 today, how many years until Annette can purchase her annuity? No units are required. Answer. The correct answer is: 11.00 Solve problem by first finding the dual and then using the simplex algorithm. Minimize (6) subject to c = 225y + 180y2 - 8y + y2 32 7y1+ 4y22 112 1 + 54 y, y 0. (ii) Find the critical points at which each of the following average cost AC functions is minimized. Check the second-order conditions on your own. (4) (a) AC = 302 180 + 585 (b) AC = 2.2502 27Q + 768 You are given an option of three lottery prizes: 1. $28387.30 now with $68281.33 in 5 years, 2. A payment each year of $26009.21 beginning in 1 year and ending after 4 payments, 3.6 payments half a year apart, each of $15210.33 with the first payment now. The current rate of interest is 3.98% compounded semi-annually. What is the value of the second option in today's dollars? Answer. Check 4 You are given an option of three lottery prizes: 1. $28387.30 now with $68281.33 in 5 years, 2. A payment each year of $26009.21 beginning in 1 year and ending after 4 payments, 3.6 payments half a year apart, each of $15210.33 with the first payment now. The current rate of interest is 3.98% compounded semi-annually. What is the value of the third option in today's dollars? Answer. A firm is developing a TV advertising campaign. Development costs (fixed costs) are $ 150,000 and the firm must pay $ 15,000 per minute for TV spots. The firm estimates that for each minute of advertising additional sales of $ 70,000 results. Out of this $ 70,000, $ 47,500 is absorbed to cover the variable cost of producing the items and $ 15,000 must be used to pay for the minutes of advertising. Any remainder is the contribution to fixed cost & profit. a) How many minutes of advertising are necessary to recover the development costs of the advertising campaign? b) If the firm uses 15-one minutes spots of advertising on the TV, determine the total revenue, total costs (production & advertising), and total profit (or loss) resulting from this campaign. Annette has just inherited $180,000. She invests this money at a rate of return of 5.94% per year compounded quarterly. After some period of time, she purchases an annuity that pays $2833 at the beginning of each month for 15 years. How much must be in the account on the date of the first payment in order to pay for this annuity? Answer $401782.60 The correct answer is: $ 339307.99 Annette has just inherited $180,000. She invests this money at a rate of return of 5.94% per year compounded quarterly. After some period of time, she purchases an annuity that pays $2833 at the beginning of each month for years. W Investing the $180,000 today, how many years until Annette can purchase her annuity? No units are required. Answer. The correct answer is: 11.00
Expert Answer:
Answer rating: 100% (QA)
Here are the stepbystep solutions 1 Minimize c 225y1 180y2 subject to constraints Find the dual ... View the full answer
Related Book For
Business Math
ISBN: 978-0133011203
10th edition
Authors: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble
Posted Date:
Students also viewed these finance questions
-
re Regular Languages and Finite Automata (a) Let L be the set of all strings over the alphabet {a, b} that end in a and do not contain the substring bb. Describe a deterministic finite automaton...
-
(i) Write down the linear program relaxation for the vertex cover problem and solve the linear program. [6 marks] (ii) Based on the solution of the linear program in (b)(i), derive an integer...
-
Baxter Ltd requires a new machine to use in the manufacture of a new product. Two machines are available: Big Gee and Maxi-Shadbolt. Baxter Ltd. depreciates machinery using the straight-line method....
-
Discuss the role of the media clearance process and advertising self-regulation.
-
What conditions are generally associated with the readers/writers problem?
-
Is the field line pattern created by a magnetic dipole the same as the field line pattern created by an electric dipole? Draw both field line patterns.
-
Radar Company sells bikes for $ 300 each. The company currently sells 3,750 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $ 225 each to make; $ 150 in variable costs...
-
(a) Discuss four benefits that would accrue to a foreign investor investing in the international bonds and (b) Highlight four conditions that must be met by a subsidiary before it could be considered...
-
a) What is the usefulness of the Lagrangean multiplier in mathematical optimization (3 marks) b) Tich Tek Ta Enterprises has the following cost function and production constraint (quota): Cost...
-
Why are non-profit organizations sometimes called voluntary organizations?
-
The following message, which originated in an international technology company, was intended to inform new team members about their upcoming move to a different office location. But its...
-
Pear Limited is a Canadian company that recently completed two large transactions with companies based in France: 1. On July 1, 2004, Pear acquired equipment at a cost of 250,000 from Pomme Ltd. Pear...
-
You want to know what team members are available immediately for a quick teleconference meeting. They are all workaholics and glued to their mobile devices. Using Figure 2.5, suggest the best...
-
How could consolidation hide important characteristics of individual funds?
-
Suppose, any set S = { a,b,n,r,h,s,d } Here, Size of X=1, S=7 i) If X >= S then find all combinations of C(X,S) , else all combinations of C(S,X) ii) If X >= S then find all permutations of...
-
With your classmates, form small teams of skunkworks. Your task is to identify an innovation that you think would benefit your school, college, or university, and to outline an action plan for...
-
The ordinary interest using exact time (banker's rule) will always be higher than exact interest using exact time. Explain why this is true.
-
The September bank statement for Dixon Fence Company shows a balance of $275.25 and a service charge of $7.50. The account register shows deposits of $120.43 and $625.56 that do not appear on the...
-
Explain way the quotient of a whole number and a proper fraction is more than the whole number.
-
An atom loses an electron to another atom. Is this an example of a physical or chemical change? (a) chemical change involving the formation of ions (b) physical change involving the formation of ions...
-
Aluminum ions carry a 3+ charge, and chloride ions carry a 1- charge. What is the chemical formula for the ionic compound aluminum chloride? (a) Al 3 Cl (b) AlCl 3 (c) Al 3 Cl 3 (d) AlCl
-
Why are ores so valuable? (a) They are sources of naturally occurring gold. (b) Metals can be efficiently extracted from them. (c) They tend to occur in scenic mountainous regions. (d) They hold many...
Study smarter with the SolutionInn App