# Question

The Primo Insurance Company is introducing two new product lines: special risk insurance and mortgages. The expected profit is $5 per unit on special risk insurance and $2 per unit on mortgages.

Management wishes to establish sales quotas for the new product lines to maximize total expected profit. The work requirements are as follows:

(a) Formulate a linear programming model for this problem.

D,I (b) Use the graphical method to solve this model.

Management wishes to establish sales quotas for the new product lines to maximize total expected profit. The work requirements are as follows:

(a) Formulate a linear programming model for this problem.

D,I (b) Use the graphical method to solve this model.

## Answer to relevant Questions

Consider the following problem. Maximize z = x1 + 2x2, Subject to and x1 ≥ 0, x2 ≥ 0. Reconsider the model in Prob. 4.1-5. (a) Work through the simplex method (in algebraic form) by hand to solve this model. (b) Repeat part (a) with the corresponding interactive routine in your IOR Tutorial. Repeat Prob. 4.3-2, using the tabular form of the simplex method. Repeat problem Work through the simplex method (in algebraic form) step by step to solve the model in Prob. 4.1-4. Consider the following statements about linear programming and the simplex method. Label each statement as true or false, and then justify your answer. Consider the following problem. Maximize Z = 2x1 + 3x2. Subject to and x1 ≥ 0, x2 ≥ 0. (a) Solve this problem graphically.Post your question

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