1. The Pamoch Aid Agency has to evacuate the residents of a volcanic island and their belongings by boat. The island's small harbour can only handle small boats. There are two types of boat the agency can hire locally: the Lotka and the Soodna. A Lotka can take 25 passengers and 10 tons of cargo, and costs £800 per day to charter. A Soodna can take 40 passengers and 4 tons of cargo, and costs £1000 per day to charter. The agency needs capacity for at least 2000 passengers and 440 tons of cargo. How many of each type of boat should be chartered to minimize the agency's costs per day, and what is the minimum daily cost?

1. The Pamoch Aid Agency has to evacuate the residents of a volcanic island and their belongings by boat. The island's small harbour can only handle small boats. There are two types of boat the agency can hire locally: the Lotka and the Soodna. A Lotka can take 25 passengers and 10 tons of cargo, and costs £800 per day to charter. A Soodna can take 40 passengers and 4 tons of cargo, and costs £1000 per day to charter. The agency needs capacity for at least 2000 passengers and 440 tons of cargo. How many of each type of boat should be chartered to minimize the agency's costs per day, and what is the minimum daily cost?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. The Pamoch Aid Agency has to evacuate the residents of a
volcanic island and their belongings by boat. The island's
small harbour can only handle small boats. There are two
types of boat the agency can hire locally: the Lotka and the
Soodna. A Lotka can take 25 passengers and 10 tons of
cargo, and costs £800 per day to charter. A Soodna can take
40
passengers and 4 tons of cargo, and costs £1000 per day
to charter. The agency needs capacity for at least 2000
passengers and 440 tons of cargo. How many of each type
of boat should be chartered to minimize the agency's costs
per day, and what is the minimum daily cost?

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