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- 1. An electronics firm is currently manufacturing an item that has a variable cost of 25Php/unit and aselling price of 50Php/unit. Fixed costs are 700,000Php. Current volume is 30, 000 units. The firmcan substantially improve the product quality by adding a new piece of equipment at an additionalfixed cost of 300,000Php. Variable cost would increase to 30Php/unit but volume should jump to50,000 units due to a higher-quality product. Should the company buy the new equipment?a. Yes, because it will gain a profit of 50,000Php.b. Yes, because it will gain a profit of 250,000Phpc. No, because it will gain a loss of 100,000Phpd. No, because it will not gain anything.e. None of the aboveProduction and Materials Purchases Budgets White Corporation’s budget calls for the following sales for next year:Quarter 1 90,000 units Quarter 3 68,000 unitsQuarter 2 76,000 units Quarter 4 96,000 unitsEach unit of the product requires 3 pounds of direct materials. The company’s policy is to begineach quarter with an inventory of product equal to 5% of that quarter’s estimated sales requirementsand an inventory of direct materials equal to 20% of that quarter’s estimated direct materials requirements for production.Required Determine the production and materials purchases budgets for the second quarter.1. A company produces three different products; x,y, and z. For the production of 1 unit of product x, 1 unit of A and 1 unit of B are used as input. 1 unit of A and 2 units of B are used to produce 1 unit of product y. To produce 1 unit of product z, only 1 unit of A is used. The company holds 40 units of A and 20 units of B periodically in total. By the way, the company can not produce product y more than the twice of product z. On the other hand, the sale price of 1 unit of product x is 10 TL, product y is 15 TL and product z is 12 TL. Furthermore, the cost of 1 unit of product x is 8 TL, product y is 9 TL and product z is 7 TL. According to above information, what should be the company’s optimal product mix to maximize its profit? Construct the problem as a LP model. 2. Solve the above problem by using Simplex Method. 3. Min Z = 0.4 x1 + 0.5 x2 Subject to 0.3 x1 +0.1 x2 ≤ 2.7 0.5x1 +0.5x2 = 6 0.6 x1 + 0.4x2 ≥ 6 x1 - 2x2 ≥ 0 x1, x2 ≥ 0 Create a problem and define the decision…
- 6. A farmer wants to start growing broiler chickens on his farm. he realizes that he needs to start with 8000 birds. Each bird will feed a ratio of 8:20: 4 respective of their starter, grower and finisher. the price of starter is k570, grower 525 and finisher 490 per bag. assuming the birds will have a mortality survival of 90% and the total cost of the business is 20% the revenues generated from the sales of birds at k90 each.a. calculates the profitb. given the profit function of 20x-xy-1.5y^2+25y, calculate the profitc. compare the two profits calculated above and give a management decision of the farm1. A distillery produces two types of alcohol for filling and distributing, the regular beer and the premium beer. A batch of regular costs $375 to manufacture and a container of the Premium beer costs $420. The manufacturer wishes to establish the weekly production plan that minimizes cost. Production of these products is limited to processing, testing and material. Each batch of regular beer requires 4 hours processing whereas each batch of premium requires 2 hours of processing. Further each batch of regular requires 4 hours of testing compared to 6 hours of testing for a batch of Super. A batch of regular and a batch of Super each require 1 litre of material. Processing and testing have a maximum of 100 and 180 hours available and the total material available is 40 litres. Because of an agreement, the sales of regular beer are limited to a weekly maximum of 20 batches and to honour an agreement with a loyal distributor, at least 10 batches of premium beer must be sold each week.…Grey Manufacturing Company expects sales to total 13,000 units in the first quarter, 12,000 units inthe second quarter, and 15,000 units in the third quarter of the current fiscal year. Company policyis to have on hand at the end of each quarter an amount of inventory equal to 10% of the followingquarter’s sales. Given this information, how many units should be scheduled for production in thesecond quarter?
- Dark beer is purchased by the case for $18.90. There are 24 bottles in each case, and each bottle contains 12 fluid ounces. You are making brine that requires 2 ½ quarts of dark beer. How much will the beer cost for the brine?List the system of inequalities which describe B in the graph below.ECON1003 Mathematics for Social Sciences Unit 3_Version 1 Page 33 6. Anya’s Jeans has production process organized in threedistinct stages: cutting; sewing and finishing. She produces threetypes of jeans, namely peddle-pushers, hipsters and low cuts. Thenumber of minutes each type requires in each production processin shown below.Type Cutting Sewing FinishingPeddle-Pusher 4 6 2Hipster 6 7 4Low Rider 9 3 6On average, there are 6400 minutes of cutting time, 3500 minutes ofsewing time and 2400 minutes of finishing time each day. Given thatthe company makes $10 profit on each peddle-pusher $ 50 on eachhipster and $60 on each low cut and that the company sells all thejeans made. List the system of inequalities for the cutting, sewingand finishing constraints.Cantel Company produces cleaning compounds for both commercial and household customers. Some of these products are produced as part of a joint manufacturing process. For example, GR37, a coarse cleaning powder meant for commercial sale, costs $1.90 a pound to make and sells for $2.00 per pound. A portion of the annual production of GR37 is retained for further processing in a separate department where it is combined with several other ingredients to form SilPol, which is sold as a silver polish, at $5.00 per unit. The additional processing requires 1/4 pound of GR37 per unit; additional processing costs amount to $3.90 per unit of SilPol produced. Variable selling costs for SilPol average $0.50 per unit. If production of SilPol were discontinued, $1,000 of costs in the processing department would be avoided. Cantel has, at this point, unlimited demand for, but limited capacity to produce, product GR37. Required: 1. Calculate the minimum number of units of SilPol that would have to be…
- Please do not give solution in image formate thanku. 3. Kings Department Store has 625 rubies, 800 diamonds, and 700 emeralds from which they will make bracelets and necklaces that they have advertised in their Christmas brochure. Each of the rubies is approximately the same size and shape as the diamonds and the emeralds. Kings will net a profit of $250 on each bracelet, which is made with 2 rubies, 3 diamonds, and 4 emeralds, and $500 on each necklace, which includes 5 rubies, 7 diamonds, and 3 emeralds. Formulate as an LP problem to maximize profit?5. Daniel is planning to earn money over the summer mowing lawns in the neighborhood to buy a scooter. The scooter he wants costs $2,200. He will be charging $19.1/lawn and estimates his costs to be $2.7/lawn. How many lawns must he mow in order to pay for the scooter entirely through his earnings? a. 115.18 b. None of the other options. c. -134.15 d. 134.15 e. 112.48 f. 2562.20M&L Manufacturing makes various components for printers andcopiers. In addition to supplying these items to a major manufacturer,the company distributes these and similar items to officesupply stores and computer stores as replacement parts forprinters and desktop copiers. In all, the company makes about20 different items. The two markets (the major manufacturerand the replacement market) require somewhat different handling.For example, replacement products must be packagedindividually whereas products are shipped in bulk to the majormanufacturer.The company does not use forecasts for production planning.Instead, the operations manager decides which items to produceand the batch size, based on orders and the amounts in inventory.The products that have the fewest amounts in inventory get thehighest priority. Demand is uneven, and the company has experiencedbeing overstocked on some items and out of others. Beingunderstocked has occasionally created tensions with the managersof…