Kimo's Material Company hauls gravel to a construction site, using a small truck and a large truck. The carryingcapacity and operating cost per load are given in the accompanying table. Kimo must deliver a minimum of 720 cubicyards per day to satisfy her contract with the builder. The union contract with her drivers requires that the totalnumber of loads per day is a minimum of 10. How many loads should be made in each truck per day to minimize thetotal cost?Capacity (yd³)Cost per LoadSmall Truck Large Truck8090$69$58In order to minimize the total cost, the number of loads in a small truck that should be made isloads in a large truck that should be made isand the number of

Let's say x is the total number of loads that fit in a small vehicle and y is the total number of…

Answered: Kimo's Material Company hauls gravel to…

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...

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Knott's Berry Farm is contemplating buying a new van for its operations. The farm's engineering staff has researched the market and found 2 units that appear to meet their requirements. Truck # 1 has a cost of $37,000 and requires an annual maintenance cost of $2,700. At the end of its useful life (3 years), it is projected to have a salvage value of $5,000. On the other hand, Truck #2 has an initial cost of $40,000 and requires only $2,000 in annual operating costs because the manufacturer is claiming that some routine maintenance is covered in the price of the truck. Truck # 2 has an estimated salvage value of $8,000 at the end of its 4 year service life. The CEO has determined that the farm's MARR is 12%. The trucks are needed for 12 years according to the 2024 Strategic Plan. The Engineering Department has determined that no significant changes are needed in the future that would change prices and functional characteristics of each truck. As a member of the Engineering Department,…
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