More expensive excursion options

Assignment Help Financial Management
Reference no: EM131056985

Captain Stubing of The Pacific Princess seeks to maximize the return for their scheduled 14 day tour of Europe and has a number of options available to him. He can ply his guests with alcohol, upsell them on fancier restaurant fare or include more expensive excursion options. These alternatives are not without tradeoffs, since different guests prefer different options, depending largely on their age and wherewithal. Among the limitations Captain Stubing must consider is the number of excursions; they must offer at least five alternatives per day for each the ten days they will reach port. In addition, the restaurant choices must exceed 12 major styles of cuisine and the bar themes down in The Grotto should rotate every other day for the 14 days. It's possible to rotate them twice a day, but any more than that and poor Isaac spends more time tearing down and setting up than he does mixing libations. Ideally, there should be at least one different bar theme for every cuisine type. The total budget for excursions, restaurants and bar has been set by the parent company at $150,000. It costs $1,500 to stock supplies for a major cuisine category, it costs $5,000 to include each different excursion, and it costs $900 to set up with a different bar theme. Based on historical data, Captain Stubing believes that each new bar setup will generate $1,500 profit, each new cuisine type will bring in $5,000, and each excursion type will generate $17,000 for the ship.

What are the appropriate objective function and constraints for this scenario?

Reference no: EM131056985

Questions Cloud

Bond coupon payments and dividends from perferred stocks : Which of the following comes closest to the net present value (NPV) of a project that produces an inflow today of $108 but requires the payment of a cash flow of $200 at the end of year 3 if the required rate of return is 10%? Bond coupon payments an..
Microsoft certified solutions associate : MCSA consist of these 2 classes and 1 exam: they are $2,975.00 each and are 5 days each. The exam is $200.00. Max number of students per class is 20.
Moles of sodium hydrogen carbonate : In a soda-acid fire extinguisher, concentrated sulfuric acid reacts with hydrogen carbonate to produce carbon dioxide, sodium sulfate and water. How many moles of sodium hydrogen carbonate would beneeded to react with 150.0g of sulfuric acid? How ..
Determine the minimum pipe diameter : Water is to be supplied to the Pelton wheel of a hydroelectric power plant by a pipe of uniform diameter, 400 m long, from a reservoir whose surface is 200 m vertically above the nozzles. The required volume flow of water to the Pelton wheel is 30..
More expensive excursion options : Captain Stubing of The Pacific Princess seeks to maximize the return for their scheduled 14 day tour of Europe and has a number of options available to him. He can ply his guests with alcohol, upsell them on fancier restaurant fare or include more ex..
Order of their expected from most active to least active : Locate the following metals on the periodic table: Magnesium, Potassium, and Sodium. Rank these metals in order of their expected from most active to least active.
Develop a supporting human resource plan : Develop a supporting human resource (HR) plan for an organizational strategy - Research a company that has undergone (or attempted to undergo) a shift in organization or culture within the past five years.
Determine the power output and the power specific speed : the required number of nozzles if the ratio of the jet diametermean diameter of the wheel is limited to a maximum value of 0.113.
Historical lead-gasoline spill : Preliminary analysis of a few soil samples from a parking lot with historical lead-gasoline spill and lead paint from the demolished buildings showed soil Pb concentrations between 60 and 700 mg/kg

Reviews

Write a Review

Financial Management Questions & Answers

  Standard deviation of the portfolio

Security F has an expected return of 10 percent and a standard deviation of 26 percent per year. Security G has an expected return of 17 percent and a standard deviation of 58 percent per year. We form a portfolio composed of 30 percent of security F..

  Residual dividend policy and maintains a debt-equity ratio

Northern Foods has aftertax earnings of $43,200 for the year. The firm adheres to a residual dividend policy and maintains a debt-equity ratio of .6. The firm needs $45,000 for capital investment. How much will the firm pay out in dividends from this..

  Approximate percentage change in price if interest rate rise

Draw the price-ytm (i) graph for a 5% fixed-coupon bond that has 10 years to maturity (assuming annual coupon payments). Calculate the duration for this bond if the interest rate is 3%. What is the approximate percentage change in price if the intere..

  Compute the price of the bonds for these maturity dates

Essex Biochemical co has $1,000 par value bond outstanding that pays 15 percent anual interest. The current yield to maturity on such bonds in the market is 17 percent. Compute the price of the bonds for these maturity dates:

  How large is his new annual payment

Robert is repaying a debt with 20 annual payments of 900 dollars each, the first coming a year from now. At the end of the 4th year, he makes an extra payment of 1800 dollars. He then shortens his remaining payment period by 2 years, and makes level ..

  Bonds outstanding with coupon rate

Union Local School District has bonds outstanding with a coupon rate of 3.6 percent paid semiannually and 17 years to maturity. The yield to maturity on these bonds is 3.9 percent and the bonds have a par value of $5,000. What is the price of the bon..

  Call option-what is the current stock price

A call option is currently selling for $4.60. It has a strike price of $60 and four months to maturity. A put option with the same strike price sells for $8.30. The risk-free rate is 6 percent, and the stock will pay a dividend of $2.10 in three mont..

  Ratio analysis can be useful for and corporation

Ratio analysis can be useful for. A corporation is

  Publishes creative crosswords-variable operating cost

JWG Company publishes Creative Crosswords. Last year, the book of puzzles sold for $10, with a variable operating cost of $8 per book and a fixed operating cost of $40,000. How many books must JWG sell this year to achieve the breakeven point for the..

  Compute the present value of net non-recurring investment

Sancore Inc. decided to invest in a project costing $35,000. It is assumed that all of $8,000 working capital will be recovered at the end of the project, which is four years. The opportunity cost of capital is 10%. Compute the present value of net n..

  Projects that may be adjusted if a recession is on horizon

Pick any industry that you would like to know more about (automobile industry). What are some examples of short term versus long term projects that may be adjusted if a recession is on the horizon? Write in detail with descriptive examples.

  Operating income and its tax rate all remain constant

The CFO of Daves Industries plans to have the company issue $300 million of a new common stock and use the proceeds to pay off some of its outstanding bonds that carry a 7% interest rate. Assume that the company, which does not pay any dividends, tak..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd