1.What is the difference between problem solving and decision making?

2.What is the breakeven point in cost, revenue, and profit models?

3.What is a decision variable in linear programming?

4.Micromedia offers computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the activity that the instructor is presenting. Micromedia is currently planning a two-day seminar on the use of Microsoft Excel in statistical analysis. The projected fee for the seminar is $520 per student. The cost for the conference room, instructor compensation, lab assistants, and promotion is $9,000. Micromedia rents computers for its seminars at a cost of $190 per computer per day. How many students are needed to achieve the breakeven point?

5.The production department of a company has indicated that they can produce widgets at a cost of $4.00 each if they lease new equipment at a cost of $10,000. Marketing has estimated the number of units they can sell to be 3,000 units. What should the selling price be to achieve breakeven?

6.Embassy Motorcycles (EM) manufactures two lightweight motorcycles designed for easy handling and safety. The EZ-Rider model has a new engine and a low profile that make it easy to balance. The Lady-Sport model is slightly larger and is specifically designed to appeal to women riders. Each EZ-Rider engine requires 6 hours of manufacturing time and each Lady- Sport engine requires 3 hours of manufacturing time. The Des Moines plant has 2100 hours of engine manufacturing time available for the next production period. Embassys motorcycle frame supplier can supply as many EZ-Rider frames as needed. However, the Lady-Sport frame is more complex, and the supplier can provide only up to 280 Lady-Sport frames for the next production period. Final assembly and testing require 2 hours for each EZ-Rider model and 2.5 hours for each Lady-Sport model. A maximum of 1000 hours of assembly and testing time are available for the next production period. The companys accounting department projects a profit contribution of $2400 for each EZ-Rider produced and $1800 for each Lady-Sport produced. The company wants to maximize profit. Formulate a linear programming model.

7.Envision Savings Bank (ESB) has $900,000 in new funds that must be allocated to home loans, personal loans, and automobile loans. The annual rates of return for the three types of loans are 7% for home loans, 9% for personal loans, and 6% for automobile loans. The banks planning committee has decided that at least 65% of the new funds must be allocated to home loans. In addition, the planning committee has specified that the amount allocated to personal loans cannot exceed 60% of the amount allocated to automobile loans. Formulate a LP problem to determine the optimal allocation to maximize annual rate of return.