The Wearever Carpet Company manufactures two brands of carpet—shag and sculptured—in 100-yard lots. It requires 8 hours to produce one lot of shag carpet and 6 hours to produce one lot of sculptured carpet. The company has the following production goals, in prioritized order: (1) Do not underutilize production capacity, which is 480 hours. (2) Achieve product demand of 40 (100-yard) lots for shag and 50 (100-yard) lots for sculptured carpet. Meeting demand for shag is more important than meeting demand for sculptured, by a ratio of 5 to 2. (3) Limit production overtime to 20 hours. a. Formulate a goal programming model to determine the amount of shag and sculptured carpet to produce to best meet the company’s goals. b. Solve this model by using the computer.
> Would you prefer a fully taxable investment earning 10 percent or a tax-exempt investment earning 8.25 percent? Why? (Assume a 24 percent tax rate.) (LO 3.4)
> Allison has returned to school after five years out of the work force. She is taking one course at the local university for a cost of $1,500. To maximize her taxes, should she take a tuition and fees deduction or an education credit? (Assume a 15 percent
> Julia Sims has $30,000 of adjusted gross income and $5,000 of medical expenses. She will be itemizing her tax deductions this year. The most recent tax year has a medical expenses floor of 10%. How much of a tax deduction will Julia be able to deduct?
> Wendy Brooks prepares her own income tax return each year. A tax preparer would charge her $75 for this service. Over a period of 10 years, how much does Wendy gain from preparing her own tax return? Assume she can earn 3 percent on her savings.
> Daniel Simmons arrived at the following tax information:
> If a person with a 32 percent tax bracket makes a deposit of $5,000 to a tax-deferred retirement account, what amount would be saved on current taxes?
> Reginald Sims deposits $5,500 each year in a tax-deferred retirement account. If he is in a 22 percent tax bracket, what amount would his tax be reduced over a 20-year time period?
> On December 30, you decide to make a $3,000 charitable donation. a. If you are in the 24 percent tax bracket, how much will you save in taxes for the current year? b. If you deposit that tax savings in a savings account for the next five years at 8 perce
> Jamie Lee and Ross have been reading quite a lot about stock funds. At Jamie Lee and Ross’s stage in life, what different types of stock funds would you recommend for them to invest their $50,000 inheritance in? Why? a. The financial pl
> Kara George received a $5,000 gift for graduation for her uncle. If she deposits this in an account paying 3 percent, what will be the value of this gift in 12 years?
> Brenda plans to reduce her spending by $50 a month. What would be the future value of this reduced saving over the next10 years? (Assume an annual deposit to her savings account, and an annual interest rate of 3 percent.)
> Use future value and present value calculations (see tables in the Chapter 1 Appendix) to determine the following: a. The future value of a $600 savings deposit after eight years at an annual interest rate of 6 percent. b. The future value of saving $1,
> Fran Powers created the following budget and reported the actual spending listed. Calculate the variance for each of these categories, and indicate whether it was a deficit or a surplus.
> The Brandon household has a monthly income of $5,630 on which to base their budget. They plan to save 10 percent and spend 32 percent on fixed expenses and 56 percent on variable expenses. a. What amount do they plan to set aside for each major budget se
> For the following situations, calculate the cash surplus or deficit:
> Carl Lester has liquid assets of $2,680 and current liabilities of $2,436. What is his current debt ratio? What comments do you have about this financial position?
> The Fram family has liabilities of $128,000 and a net worth of $340,000. What is the debt ratio? How would you assess this?
> Compare tax services (and providers) in your area and online. Talk to friends, relatives, and others about the providers that they use.
> Using an online search, determine the tax deductions and credits for which you may be eligible for the current year.
> It has been suggested by Jamie Lee and Ross’ professional investment counselor to perform a financial check-up as the first step in investing in mutual funds, even though they are investing $50,000 that was inherited from Ross’ late uncle’s estate. Is i
> Estimate the amount of all types of tax that you have paid in the last month
> Survey friends and relatives about their tax planning strategies. Do most people get a federal tax refund or owe taxes each year? Is their situation (refund or payment) planned?
> Using Exhibit 3-1 as a guide, calculate Jamie Lee’s Adjusted Gross Income amount by completing the table below:
> What impact on Jamie Lee’s income would the gift of $1,000 from her great aunt have on her adjusted gross income? Would there be an impact on the adjusted gross income with her $2,000 raffle prize winnings? Explain your answer.
> Jamie Lee has a marginal tax rate of 15% and an average tax rate of 11%. Explain why there is a difference between the two rates.
> What would Jamie Lee’s filing status be considered?
> 1) One way to identify if your college is a good investment is to review their: a) Return on Investment b) Maximum Loan Amount c) College Culture d) Average Class Size 2) The main form to qualify for Federal student aid is: a) FAFSA, Free Application fo
> For each of the following situations, what amount would the insurance company pay? (LO8.2) a. Wind damage of $1,835; the insured has a deductible of $500. b. Theft of a stereo system worth $4,000; the insured has a deductible of $500. c. Vandalism that d
> If Carissa Dalton has a $260,000 home insured for $200,000, based on the 80 percent coinsurance provision, how much would the insurance company pay on a $10,000 claim? (LO8.2)
> What would it cost an insurance company to replace a family’s personal property that originally cost $40,000? The replacement costs for the items have increased 15 percent. (LO8.2)
> Suppose Jamie Lee and Ross are evaluating corporate stocks to add to their investment portfolio. Using Your Personal Financial Plan Sheet 38, select a company from your own personal experience, such as an automobile or technology company, and research th
> Describe the stage in the adult life cycle (Chapter 1, Exhibit 1-4) that Jamie Lee and Ross are experiencing right now. What are some of the financial activities that they should be participating in at this stage?
> Aaron Zeitel is a high school senior deciding which college to attend in the fall. He has narrowed his choices to three liberal arts schools: Arrington, Barton, and Claiborne. His criteria for selection are the school’s academic reputat
> Carol Latta is visiting hotels in Los Angeles to decide where to hold a convention for a national organization of college business school teachers she represents. There are three hotels from which to choose—the Cheraton, the Milton, and
> Station WRCH in Richmond, Virginia, is interviewing candidates for the job of news anchor on its 6:00 p.M. Eyewitness News show. There are three final candidates for the job—June Pawlie, Kellie Cooric, and Tim Brokenaw. The criteria the
> Alex Wall is shopping for a new four-wheel-drive utility vehicle and has identified three models from which she will choose—an Explorer, a Trooper, and a Passport. She will make her selection based on Consumer Digest ratings, price, and
> In Problem 22, if Megan Moppett has $85,000 to invest and she wants to diversify by investing in all three funds, how much should she invest in each?
> Megan Moppett is a sales representative for Technical Software Systems (TSS), and she receives a commission for every new system installation she sells to a client. Her earnings during the past few years have been very high, and she wants to invest in a
> In Problem 13 in Chapter 6, Computers Unlimited sells microcomputers and distributes them from three warehouses to four universities. The available supply at the three warehouses, demand at the four universities, and shipping costs are shown in the follo
> Katnis Evergreen, a junior at Tech, is moving out of the dorms where she has lived for 2 years into an apartment in town. She is considering three apartment complexes—the Terraces, the Vistas, and Foxfield. She is going to evaluate the
> A Non-Resident Indian (NRI) wants to buy an apartment in India to use it when he returns home. He considers four factors—climate, infrastructure, resale value, and services—to make his decision. His friends recommended
> An interior design and construction company produces two types of tiles—floor tiles and wall tiles. Floor tiles are made with slightly rough surface to make it nonslippery; whereas wall tiles are made with smooth and mirror finish. The company currently
> The Oakdale County School Board was meeting in special session. A federal judge had ordered the board to present an acceptable busing plan for racially balancing the four high schools in Oakdale County within a week. The judge had previously given the sc
> Infocomp Systems Lab is a research and development (R&D) company that develops computer systems and software primarily for the medical industry. The lab has proposals from its own researchers for eight new projects. Each of the proposed research proj
> Mac’s Warehouse is a large discount store that operates 7 days per week. The store needs the following number of full-time employees working each day of the week: Each employee must work 5 consecutive days each week and then have 2 days
> The Eaststate Manufacturing Company produces four different airplane parts from fabricated sheet metal for several major aircraft companies. The manufacturing process consists of four operations—stamping, assembly, finishing, and packag
> A rural clinic hires its staff from nearby cities and towns on a part-time basis. The clinic attempts to have a general practitioner (GP), a nurse, and an internist on duty during at least a portion of each week. The clinic has a weekly budget of $1,200.
> A company wants to produce two products, A and B, using three resources—machine hours, raw material, and assembly time—as given in the table below. The company wants to satisfy the following goals: (1) Achieve total sa
> The East Midvale Textile Company produces denim and brushed-cotton cloth. The average production rate for both types of cloth is 1,000 yards per hour, and the normal weekly production capacity (running two shifts) is 80 hours. The marketing department es
> A manufacturing company produces products 1, 2, and 3. The three products have the following resource requirements and produce the following profit: At present, the firm has a daily labor capacity of 240 available hours and a daily supply of 400 pounds o
> A group of developers is building a new shopping center. A consultant for the developers has constructed the following project network and assigned activity times, in weeks. Determine the earliest and latest activity times, activity slack, critical path,
> In one of the little-known battles of the Civil War, General Tecumseh Beauregard lost the Third Battle of Bull Run because his preparations were not complete when the enemy attacked. If the critical path method had been available, the general could have
> Moore Housing Contractors is negotiating a deal with Countryside Realtors to build six houses in a new development. Countryside wants Moore Contractors to start in late winter or early spring, when the weather begins to moderate, and build on through the
> Given the following network, with activity times in weeks, determine the earliest and latest activity times and the slack for each activity. Indicate the critical path and the project duration:
> Given the following network, with activity times in months, determine the earliest and latest activity times and slack for each activity. Indicate the critical path and the project duration.
> For the network in Problem 4, determine the earliest and latest activity times and the slack for each activity. Indicate how the critical path would be determined from this information.
> The following table provides the crash data for the network project described in Problem 6: Using the computer, crash the network to 32 months. Indicate the first critical path activities and then the cost of crashing the network.
> Identify all the paths in the following network, compute the length of each, and indicate the critical path (activity times are in weeks):
> The following table provides the crash data for the network project described in Problem 15: The normal activity times are considered to be deterministic and not probabilistic. Using the computer, crash the network to 26 weeks. Indicate how much it would
> Reconstruct the example problem at the end of this chapter as an AOA network. Assume that the most likely times (m) are the normal activity times and that the optimistic times (a) are the activity crash times. Further assume that the activities have the
> Formulate the general linear programming model for the project network for installing an order processing system shown in Figure 8.14 and solve it.
> A project has six activities on arcs as shown in the diagram. The values on the arcs are the duration of activities in days. a. Formulate a linear programming model for this project. b. Find the critical duration using computer.
> The following table provides the information necessary to construct a project network and project crash data: a. Construct the project network. b. Manually crash the network to 28 weeks. c. Formulate the general linear programming model for this network.
> John Aaron called the meeting of the Programs and Arts Committee of the Student Government Association to order. “Okay, okay, everybody, quiet down. I have an important announcement to make,” he shouted above the noise. The room got quiet, and John start
> The following table provides the information necessary to construct a project network and project crash data: a. Construct the project network. b. Compute the total allowable crash time per activity and the crash cost per week for each activity. c. Deter
> The following table contains the activities for planning a wedding and the activity time estimates; however, the precedence relationships between activities are not included: Using your best judgment, determine the project network, critical path, and exp
> During a violent thunderstorm with very high wind gusts in the third week of March, the broadcast tower for the public radio station WVPR, atop Poor Mountain in Roanoke, collapsed. This greatly reduced the strength of the station’s sign
> The Valley United Soccer Club is planning a soccer tournament for the weekend of April 29 and 30. The club’s officers know that by March 30 they must send out acceptances to teams that have applied to enter and that by April 15 they mus
> Lakeland-Bering Aircraft Company is preparing a contract proposal to submit to the Defense Department for a new military aircraft, the X-300J jet fighter. Part of the proposal is a development and production schedule for completion of the first aircraft.
> Construct a Gantt chart and project network for the following set of activities, compute the length of each path in the network, and indicate the critical path:
> A marketing firm is planning to conduct a survey of a segment of the potential product audience for one of its customers. The planning process for preparing to conduct the survey consists of six activities, with precedence relationships and activity time
> PM Computers is an international manufacturer of computer equipment and software. It is going to introduce a number of new products in the coming year, and it wants to develop marketing programs to accompany the product introductions. The marketing progr
> RusTech Tooling is a large job shop operation that builds machine tools and dies to manufacture parts for specialized items. The company primarily bids on government-related contracts to produce parts for such items as military aircraft and weapons syste
> On May 21, 1927, Charles Lindbergh landed at Le Bourget Field in Paris, completing his famous transatlantic solo flight. The preparation period prior to his flight was quite hectic, and time was very critical because several other famous pilots of the da
> Suntrek, based in China, is a global supplier of denim jeans for apparel companies around the world. It purchases raw cotton from producers in Arkansas, Mississippi, and Texas, where it is picked, ginned, and baled and then trans- ported by flatbed truck
> County General Hospital discovered a problem in the turnaround time required to discharge a patient from a bed and admit a new patient, which in turn causes delays in the hospital operating room resulting in physician and patient dissatisfaction. The hos
> In the Third Battle of Bull Run, for which a CPM/PERT network was developed in Problem 19, General Beauregard would have won if his preparations had been completed in 15 days. What would the probability of General Beauregard’s winning the battle have bee
> The Stone River Textile Mill was inspected by OSHA and found to be in violation of a number of safety regulations. The OSHA inspectors ordered the mill to alter some existing machinery to make it safer (add safety guards, etc.); purchase some new machine
> Jane and Jim Smith are going to give a dinner party on Friday evening at 7:00 p.M. Their two children, Jerry and Judy, are going to help them get ready. The Smiths will all get home from work and school at 4:00 p.M. Jane and Jim have developed a project
> The Center for Information Technology at State University has outgrown its office in Bates (B) Hall and is moving to Allen (A) Hall, which has more space. The move will take place during the 3-week break between the end of summer semester and the beginni
> For the CPM/PERT network in Problem 16, determine the probability that the network duration will exceed 50 months.
> Construct a Gantt chart for the following set of activities, and indicate the project completion time and slack for each activity:
> Consider the network in Problem 8, but with the following new time estimates for each activity: Determine the following: a. Expected activity times b. Earliest activity times c. Latest activity times d. Activity slack e. Critical path f. Expected project
> The Matsusaki Company near Nashville, Tennessee, is a direct auto parts supplier for the nearby Neptune auto manufacturing plant. To gain a competitive advantage and meet quality requirements of its customers, Matsusaki has undertaken a project to achiev
> The plant engineer for the Bitco manufacturing plant is designing an overhead conveyor system that will connect the distribution/inventory center to all areas of the plant. The network of possible conveyor routes through the plant, with the length (in fe
> Given the following network with the indicated distances between nodes (in miles), determine the shortest route from node 1 to each of the other six nodes (2, 3, 4, 5, 6, and 7):
> The Dynaco Company manufactures a product in five stages. Each stage of the manufacturing process is conducted at a different plant. The following network shows the five different stages and the routes over which the partially completed products are ship
> The traffic management office in Richmond is attempting to analyze the potential traffic flow from a new office complex under construction to an interstate highway interchange during the evening rush period. Cars leave the office complex via one of three
> The National Express Parcel Service has established various truck and air routes around the country over which it ships parcels. The holiday season is approaching, which means a dramatic increase in the number of packages that will be sent. The service w
> The FAA has granted a license to a new airline, Omniair, and awarded it several routes between Los Angeles and Chicago. The f lights per day for each route are shown in the following network: Determine the maximum number of flights the airline can schedu
> An oil well in Abu Dhabi (source) must pump oil from Abu Dhabi to Al Ain (Destination) through existing pipelines passing through several cities along its way. Since these pipelines are constructed in a modular way, the diameters of the pipes are differe
> Given the following network, with the indicated flow capacities along each branch, determine the maximum flow from source node 1 to destination node 6 and the flow along each branch:
> Given the following network, with the indicated flow capacities along each branch, determine the maximum flow from source node 1 to destination node 7 and the flow along each branch:
> A project has eight activities with their associated predecessors as given in the following table. Construct the CPM/PERT network for this project and determine the project schedule. Identify the critical path and determine the expected project duration
> Kathleen Taylor, a student at Tech, is planning to visit her sister, Lindsey, who is living in Toulouse, France, over the summer break. She is going to fly from Dulles Airport in Washington to Charles de Gaulle Airport in Paris, and because of the time c
> Given the following network, with the indicated flow capacities of each branch, determine the maximum flow from source node 1 to destination node 6 and the flow along each branch:
> FedEx has its main office in City 1. It has six offices in different commercial areas. FedEx advises its local pick up agents not to visit its central collection office to drop the picked-up parcels if there is another office on the way to the main offic
> Tech wants to develop an area network that will connect its server at its computer and satellite center with the main campus buildings to improve Internet service. The cable will be laid primarily through existing electrical tunnels, although some cable
> State University has decided to reconstruct the sidewalks throughout the east side of its campus to provide wheelchair access. However, upgrading sidewalks is a very expensive undertaking, so for the first phase of this project, university administrators
> Determine the minimal spanning tree for the network in Problem 7.
