New Exercise Bank Content Qu$.05-12$

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 shown below:

$\backslash$table$[[,,,$Hours$],[,$Work$-$Hours per,Unit,Available$],[$Underwriting$,3,2,2,450],[$Administration$,0,1,850],[$Claims$,2,0,1,250]]$

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Formulate and solve a linear programming model for this problem on a spreadsheet.

a$.$ Determine the sales quota for special risk and mortgage.

Note: Round your answers to $2$ decimal places.

$\backslash$table$[[,$Special Risk,Mortgage$],[$Sales Quota,,$]]$

b$.$ Determine the total profit.

Total profit