Anne and Beth work for NET Financial (firm that sells Economic Forecasting Services- EFS). Their productivity measures
Question:
Anne and Beth work for NET Financial (firm that sells Economic Forecasting Services- EFS). Their productivity measures and constraints per 40 hour work week are: Anne is capable of selling 20 EFS contracts in 40 hours or she is capable of underwriting 10EFS contracts in 40 hours; Beth is capable of selling 40 EFS contracts in 40 hours or she is capable of underwriting 80 EFS contracts in 40 hours. Commission on the sale of an EFS contract is $500 per contract, and the underwriting fee for an EFS contract is $1000. To receive payment the forecasting contract has to be sold and unwritten in the same week.
What is the Maximum amount Anne and Beth can make per week working alone?
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso