Purchasing Trans Global Tractor Trailers has decided to spend up to $1,500,000 on a fleet of new trucks, and it is considering three model: the Gigahaul, which has a capacity of 6,000 cubic feet and is priced at $60,000; the Megahaul, with a capacity of 5,000 cubic feet, priced at $50,000: and the Picohaul, with a capacity of 2,000 cubic feet, priced at $40,000. The anticipated annual revenue are $500,000 for each new truck purchased (regardless of size). Trans Global would like a total capacity of up to 130,000 cubic feet and feel that it cannot provide drivers and maintenance for more than 30 trucks. How many of each should it purchase to maximize annual revenue? What is the largest possible revenue it can make?
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Chapter 5 Solutions
Finite Mathematics
- What is a carrying capacity? What kind of model has a carrying capacity built into its formula? Why does this make sense?arrow_forwardThe water-supply manager for a Midwest city needs to supply the city with at least 10 million gal of potable (drinkable) water per day. The supply may be drawn from the local reservoir or from a pipeline to an adjacent town. The local reservoir has a maximum daily yield of 6 million gallons of potable water, and the pipeline has a maximum daily yield of 10 million gallons. By contract, the pipeline is required to supply a minimum of 6 million gallons/day. If the cost for 1 million gallons of reservoir water is $300 and that for pipeline water is $600, how much water should the manager get from each source to minimize daily water costs, C, for the city?arrow_forwardMr. Bob wants TEN vans with a total cargo capacity of precisely 2000 ft³. He can choose from three models with the follow capacity: small 150 ft³, medium 200 ft³, or large 250 ft3. What are Mr. Bob's purchase options?arrow_forward
- The Big Bang Novelty Company makes three basic types of noisemakers: Toot, Wheet, and Honk. The respective selling prices are $0.9O, $0.75, and $1.25 per unit, respectively. Two Toots can be made per minute, and each one has a feather attached to it. Three Wheets can be made per minute; each one has two feathers and is sprinkled with one-half ounce of sequin powder. Four Honks can be made in a minute; each one has 3 feathers and one ounce of sequin powder. The manufacturing costs for Toots, Wheets, and Honks are $0.35, $0.40, and $0.50, respectively. The following resources are available: 80 hours of labor, 90 ounces of sequin powder, and 360 feathers. The management of Big Bang wants to produce at least three times as many Wheets as the combined total of Toots and Honks. How many units of each type of noisemaker should they make to maximize their total profit.arrow_forwardFind the total cost of the following shipment of materials: 23 floor boxes listed at $4.00 each, less 15% ; 150 half-inch conduits listed at $0.60 each, less 20% ; 125 convenience outlets listed at $0.79 each, less 10% ; 83 single-pole flush switches listed at $0.45 each, less 30%.arrow_forwardBruno Fruscalzo decided to start a small production facility in Sydney to sell gelato to the local restaurants. His local milk supplier charges $0.50 per kilogram of milk plus a $15 delivery fee (the $15 fee is independent of the amount ordered). Bruno's holding cost is $0.03 per kilogram per month. He needs 8,250 kilograms of milk per month. Suppose Bruno orders 10,000 kilograms each time. What is his average inventory (in kilograms)? Suppose Bruno orders 6,250 kilograms each time. How many orders does he place with his supplier each year? Note: Round your answer to 1 decimal place. How many kilograms should Bruno order from his supplier with each order to minimize the sum of the ordering and holding costs? If Bruno's storage vessel can hold only 2,000 kilograms of milk, what would be Bruno's annual ordering and holding costs if he orders this amount? If Bruno's storage vessel can hold only 7, 000 kilograms of milk, what would be Bruno's annual ordering and holding costs if he orders…arrow_forward
- TMA manufactures 37-in. high-definition LCD televisions in two separate locations: Location I and Location II. The output at Location I is at most 6500 televisions/month, whereas the output at Location II is at most 5000 televisions/month. TMA is the main supplier of televisions to Pulsar Corporation, its holding company, which has priority in having all its requirements met. In a certain month, Pulsar placed orders for 2600 and 4100 televisions to be shipped to two of its factories located in City A and City B, respectively. The shipping costs (in dollars) per television from the two TMA plants to the two Pulsar factories are as follows. To Pulsar Factories From TMA City A City B Location I $7 $4 Location II $8 $8 TMA will ship x televisions from Location I to City A and y televisions from Location I to City B. Find a shipping schedule that meets the requirements of both companies while keeping costs, C (in dollars), to a minimum. Minimize C =…arrow_forwardThe Megabuck Hospital Corp. is to build a state-subsidized nursing home catering to homeless patients as well as high-income patients. State regulations require that every subsidized nursing home must house a minimum of 770 homeless patients and no more than 1,100 high-income patients in order to qualify for state subsidies. The overall capacity of the hospital is to be 2,100 patients. The board of directors, under pressure from a neighborhood group, insists that the number of homeless patients should not exceed twice the number of high-income patients. Due to the state subsidy, the hospital will make an average profit of $9,800 per month for every homeless patient it houses, whereas the profit per high-income patient is estimated at $7,900 per month. How many of each type of patient should it house in order to maximize profit? HINT [See Example 3.] (If an answer does not exist, enter DNE.) high-income patients homeless patients profit $arrow_forwardCreate an LP Model.arrow_forward
- The Megabuck Hospital Corp. is to build a state-subsidized nursing home catering to homeless patients as well as high-income patients. State regulations require that every subsidized nursing home must house a minimum of 760 homeless patients and no more than 800 high-income patients in order to qualify for state subsidies. The overall capacity of the hospital is to be 2,100 patients. The board of directors, under pressure from a neighborhood group, insists that the number of homeless patients should not exceed twice the number of high-income patients. Due to the state subsidy, the hospital will make an average profit of $9,800 per month for every homeless patient it houses, whereas the profit per high-income patient is estimated at $7,800 per month. How many of each type of patient should it house in order to maximize profit? (If an answer does not exist, enter DNE.) high-income patients homeless patients profitarrow_forwardTransformers for underground works were planned to be provided. Type A has an initial cost of $70,000 and a life of 8 years. Type B has an initial cost of $95,000 and a life expectancy of 12 years. The annual operating cost for type A is expected to be $9000, while the AOC for type B is expected to be $7000. Salvage values are $5000 for type A, and $10,000 for type B. Using the incremental cash flow analysis, choose the better alternative.arrow_forwardThe supervisor at the Precision Machine Shop wants to determine the staffing policy that minimizes total operating costs. The average arrival rate at the tool crib, where tools are dispensed to the workers, is eight machinists per hour. Each machinist’s pay is $25 per hour. The supervisor can staff the crib either with a junior attendant who is paid $13 per hour and can process 12 arrivals per hour or with a senior attendant who is paid $16 per hour and can process 16 arrivals per hour. Which attendant should be selected, and what would be the total estimated hourly cost?arrow_forward