1) List one example of off-balance sheet financing

2) list 3 reasons that a company may want to purchase back their own shares

3) What is market risk

4) List 2 examples of advantages to the company when it issues debt compared to issuing/selling shares.

5) An operations manager is trying to determine a production plan for the next week.

There are three products:

Product P

Product Q

Product R

Each of the four machines performs a unique process. There is one machine of each

type, and each machine is available for 2800 minutes per week. The unit processing

times for each machine is given in below Table:

Machine Data

Units Processing Time ( Min)

Machine Product P (units) Product Q (units) Product R (units) Availability (hrs)

A 40 20 20 4,800

B 24 56 32 4,800

C 30 12 32 4,800

D 20 30 0 4,800

Total time 114 118 84 19,200

Machine

Product P (units)

Product Q (units)

Product R (units)

Availability (Hours)

The unit revenues and maximum sales for the week are indicated in Table 2. Storage

from one week to the next is not permitted. The operating expenses associated with

the plant are $12000 per week, regardless of how many components and products

are made. The $12000 includes all expenses except for material costs.

Per unit

Item ProductP ProductQ ProductR

Income 180 200 140

Material cost 90 40 20

Net profit 90 60 50

Max sales 200 40 60

Required: MAX PROFIT

1- Make "Objective Function "It is Max Profit "in this case.

2- Identify the constraints