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In the dual-objective advertising model, we put a budget constraint on the total advertising cost and then maximized the total number of excess exposures. Do it the opposite way, reversing the roles o...
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Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 220,000 pounds of grade 6 ora...
See AnswerQ: A bank is attempting to determine where its assets should be invested
A bank is attempting to determine where its assets should be invested during the current year. At present, $500,000 is available for investment in bonds, home loans, auto loans, and personal loans. Th...
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Young MBA Erica Cudahy can invest up to $20,000 in stocks and loans. Each dollar invested in stocks yields $0.08 profit, and each dollar invested in a loan yields $0.13 profit. At least 40% of all mon...
See AnswerQ: A fertilizer company blends silicon and nitrogen to produce two types of
A fertilizer company blends silicon and nitrogen to produce two types of fertilizers. Fertilizer 1 must be at least 40% nitrogen and sells for $70 per pound. Fertilizer 2 must be at least 70% silicon...
See AnswerQ: A chemical manufacturer uses chemicals 1 and 2 to produce two drugs
A chemical manufacturer uses chemicals 1 and 2 to produce two drugs. Drug 1 must be at least 80% chemical 1, and drug 2 must be at least 50% chemical 2. Up to 70,000 ounces of drug 1 can be sold at $4...
See AnswerQ: Hiland’s Appliances stocks laptops, TVs, refrigerators, microwave ovens,
Hiland’s Appliances stocks laptops, TVs, refrigerators, microwave ovens, and ranges. These products compete for floor space, tie up different amounts of capital, and have different profit margins. The...
See AnswerQ: Many Wall Street firms use LP models to select a desirable bond
Many Wall Street firms use LP models to select a desirable bond portfolio. The following is a simplified version of such a model. Solodrex is considering investing in four bonds; $1 million is availa...
See AnswerQ: A coal company produces coal at three mines and ships it to
A coal company produces coal at three mines and ships it to four customers. The cost per ton of producing coal, the ash and sulfur content (per ton) of the coal, and the production capacity (in tons)...
See AnswerQ: A furniture company manufactures tables and chairs. A table requires 45
A furniture company manufactures tables and chairs. A table requires 45 board-feet of wood, and a chair requires 20 board-feet of wood. Wood can be purchased at a cost of $1.90 per board-foot, and 25,...
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