Homework Help is Here – Start Your Trial Now!
Business
Operations Management
A company is considering two insurance plans with the following types of coverage and premiums: Plan A Plan B $26000 $33000 $185000 $137000 $60 Fire/Theft Liability Monthly Premium $70 Premiums are sold in units. For example, one can buy one unit of plan A insurance for $70.00 per month and receive $26,000.00 in Theft/Fire insurance. Two units of plan A insurance cost $140.00 per month and give $52,000.00 in Theft/Fire insurance. The company wants at leoast $781,000.00 in coverage for Thef/Fire insurance and $4,090,000.00 in coverage for liability insurance. How many units of each plan should be purchased to meet the needs of the company while minimizing cost? The company should purchase units of plan A and units of plan B. What is the minimum monthly premium for the company? (Note: your answer is a dollar amount and should include a dollar symbol).

A company is considering two insurance plans with the following types of coverage and premiums: Plan A Plan B $26000 $33000 $185000 $137000 $60 Fire/Theft Liability Monthly Premium $70 Premiums are sold in units. For example, one can buy one unit of plan A insurance for $70.00 per month and receive $26,000.00 in Theft/Fire insurance. Two units of plan A insurance cost $140.00 per month and give $52,000.00 in Theft/Fire insurance. The company wants at leoast $781,000.00 in coverage for Thef/Fire insurance and $4,090,000.00 in coverage for liability insurance. How many units of each plan should be purchased to meet the needs of the company while minimizing cost? The company should purchase units of plan A and units of plan B. What is the minimum monthly premium for the company? (Note: your answer is a dollar amount and should include a dollar symbol).

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question
100%
A company is considering two insurance plans with the following types of coverage and premiums: Plan A Plan B $26000 $33000 $185000 $137000 $60 Fire/Theft Liability Monthly Premium $70 Premiums are sold in units. For example, one can buy one unit of plan A insurance for $70,.00 per month and receive $26,000.00 in Theft/Fire insurance. Two units of plan À insurance cost $140.00 per month and give $52,000.00 in Theft/Fire insurance. The company wants at loast $781,000.00 in coverage for Thefu/Fire insurance and $4,090,000.00 in coverage for liability insurance. How many units of each plan should be purchased to meet the needs of the company while minimizing cost? The company should purchase units of plan A and units of plan B. What is the minimum monthly premium for the company? (Note: your answer is a dollar amount and should include a dollar symbol).
Transcribed Image Text:A company is considering two insurance plans with the following types of coverage and premiums: Plan A Plan B $26000 $33000 $185000 $137000 $60 Fire/Theft Liability Monthly Premium $70 Premiums are sold in units. For example, one can buy one unit of plan A insurance for $70,.00 per month and receive $26,000.00 in Theft/Fire insurance. Two units of plan À insurance cost $140.00 per month and give $52,000.00 in Theft/Fire insurance. The company wants at loast $781,000.00 in coverage for Thefu/Fire insurance and $4,090,000.00 in coverage for liability insurance. How many units of each plan should be purchased to meet the needs of the company while minimizing cost? The company should purchase units of plan A and units of plan B. What is the minimum monthly premium for the company? (Note: your answer is a dollar amount and should include a dollar symbol).
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Optimization models
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS