Chapter 8, Problem 1.2C

2 companys customers are either old or new. A customer may be able or not able to provide an acceptable reference. The customer may either be known or not known to credit controller. A new customer who is able to provide an acceptable reference is allowed credit up to Sh. 1500,000. An old customer that is able to provide an acceptable reference is allowed credit up to Sh. 3500,000. A customer that is known is allowed a credit up to sh. 1,000,000.   A customer could be an individual or a firm. A firm is guaranteed a credit of sh. 50,000 while an individual is guaranteed credit of sh. 20,000. Draw a decision table to express the above logic.

Mr. Johnnie B. Good has a furniture business which he operates as a sole proprietor. The business has been doing well for several years and now he wants to finance the expansion of his business by way of a loan and he is thinking of approaching BCN Bank accordingly. He is also planning to buy a great deal of raw material on credit from Miller’s Hardware in support of the business expansion. Mr. Good in looking at the potential risks to his personal assets and in an effort to safeguard himself from losing his personal assets if the business failed and was not able to repay the loan or pay for the material he got on credit, filed the relevant documents with the companies office and incorporated a private company, Good Furniture Ltd, with him as the sole shareholder and director and then went ahead and obtained a loan in the company’s name from the bank and bought the raw material on credit on behalf of the company. The bank in providing the loan ensured that Mr. Good signed a personal…

Aventura Savings and Loan requires 15% down payment on a mortgage loan. What is the down payment needed to finance a $148,500 home?

Warren Buffy is an enormously wealthy investor who has built his fortune through his legendary busimen acumen. He currently has been offered three major investments and would like to choose one. The first one is a conservative  investment that would perform well in an improving economy and only suffer a small loss in a worsening economy.  The second is a speculative investment that would perform extremely well in an improving economy but would do  very badly in a worsening economy. The third is a countercyclical investment that would lose some money in an improving economy but would perform well in a worsening economy. The respective payoffs (millions) and the  associated probabilities as shown in the Table below.   Decision alternatives                  Improving                Stable       Worsening Conservative                 30.00                     5.00             -8.00 Speculative                   40.00                    10.50           -30.00 Countercyclical            -5.0…

Pls help ASAP on both

VitaLife is a nutritional supplements company with operations in several countries across the world. The Latin America and Caribbean operations are headed by one of VitaLife's Vice Presidents, Mrs. Michelle Perez. Reporting directly to Mrs. Perez is Mr. Lorenzo Lucas, Head of Caribbean operations, and Mr. Manuel Gonzalez, Head of Latin America operations. Mr. Roger Hanson, Commercial Manager of the Caribbean reports directly to Mr. Lucas, who communicates regularly with Mr. Gonzalez. VitaLife's sales team in Jamaica is comprised of four representatives, all of whom report directly to the supervisor, Mrs. Andrea Wilson, who in turn reports directly to Mr. Hanson. Each sales representative is provided with an I Pad loaded with presentation slides for use when communicating with the pharmacists that they ought to visit daily. On a monthly basis the sales representatives provide their supervisor with vital information on challenges and opportunities realized when working with the…

A salesperson has been trying to create a competitive market analysis (CMA) for a potential listing. The immediate neighborhood has many bank owned foreclosure properties, which seem to have depressed the prices showing up in public records and on the MLS system. In this case, the salesperson A: Can seek similar properties from a neighborhood across town with fewer foreclosures to use as "comps" B: Cannot use a CMA since it will not show true market value. The broker should ask the sellers what they want for their home and list at that price. C: Should advise the sellers to rent their present home until the market improves. This way they can have an additional income to allow them to move up to a better home in a better neighborhood. The broker could then seek to sell the rented home to a house flipper as an investment. D: Should seek any non-foreclosure "arm's length" transactions for properties similar to her subject property in the same or nearby neighborhoods. Even if their prices…

Management of the Toys R4U Company needs to decide whether to introduce a certain new novelty toy for the upcoming Christmas season, after which it would be discontinued. The total cost required to produce and market this toy would be $500,000 plus $15 per toy produced. The company would receive revenue of $35 for each toy sold. Assuming that every unit of this toy that is produced is sold, write an expression for the profit in terms of the number produced and sold. Then find the break-even point that this number must exceed to make it worthwhile to introduce this toy. Now assume that the number that can be sold might be less than the number produced. Write an expression for the profit in terms of these two numbers. Formulate a spreadsheet that will give the profit in part b for any values of the two numbers. Write a mathematical expression for the constraint that the number produced should not exceed the number that can be sold.

A young computer engineer has $12,000 to invest and three different investment options (funds) to choose from. Type 1 guaranteed investment funds offer an expected rate of return of 7%, Type 2 mixed funds (part is guaranteed capital) have an expected rate of return of 8%, while an investment on the Stock Exchange involves an expected rate of return of 12%, but without guaranteed investment capital. Computer engineer has decided not to invest more than $2,000 on the Stock Exchange in order to minimize the risk. Moreover for tax reasons, she needs to invest at least three times more in guaranteed investment funds than in mixed funds. Assume that at the end of the year the returns are those expected; she is trying to determine the optimum investment amounts. (a) Express this problem as a linear programming model with two decision variables.(b) Solve the problem with the graphical solution procedure and define the optimum solution.