How many units of each business can be invested

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The Company Continues to plan to invest the most $ 1,200,000. This money will be invested in two branches of business ie P and Q. Each unit of P requires $ 50 and can give a rate of return per unit per year of 10% while each Q unit requires $ 100, but gives a rate of return per unit per year of 4%. The company has considered that the target rate of return of both businesses is at least $ 60,000 per year. Then the result of company analysis get data that every unit of P and Q have index of risk each 8 and 3. Though this company do not want to bear risk too big. The other policy desired by the leader especially for business branch P is targeted at least amount of investment is $ 3.0000. How to solve the above problem if the company intends to keep investing but by pressing or minimizing the risk as small as possible. How many units of each business can be invested? (graphical method and simplex method)

Reference no: EM131703818


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