The company is interested in maximizing profits

Assignment Help Financial Management
Reference no: EM13979110

The Tim Burr Company wants to best utilize the wood resources in one of its forest regions. Within this region, there is a saw mill and a plywood mill; thus, timber can be converted to lumber or plywood. 
Producing a marketable mix of 1000 board feet of lumber products requires 1000 board feet of spruce and 3000 board feet of Douglas fir. Producing 1000 square feet of plywood requires 2000 board feet of spruce and 4000 board feet of Douglas fir. This region has available 32,000 board feet of spruce and 72,000 board feet of Douglas fir. Sales commitments require that at least 4000 board feet of lumber and 12,000 square feet of plywood be produced during the planning period. The profit contributions are $40 per 1000 board feet of lumber products and $60 per 1000 square feet of plywood. The company is interested in maximizing profits. Provide a linear programming model formulation and solve for an optimal solution.

Reference no: EM13979110

Questions Cloud

How long can it supply current to the load : A 6 V battery is connected to a 300load. Under these conditions, it is rated at 40 Ah. How long can it supply current to the load?
What happens to the nand latch debounce circuit : 1) What happens to the NAND latch debounce circuit when the pull-up resistors are removed?2)Why do flip-flops have both synchronous and asynchronous inputs?
Provide a linear programming model formulation only : Show & Sell is interested in finding the optimum allocation of the budget to radio and TV advertising. Provide a linear programming model formulation only; you do not need to identify an optimal solution.
What is the marginal rate of substitution : There are two goods: x and y. A consumer's utility function isu(x, y) = 5x2y + 10x3and that consumer has income of m = 189.18. What is the marginal rate of substitution for this consumer?19. Write out the Lagrangian associated with the consumer's pro..
The company is interested in maximizing profits : The company is interested in maximizing profits. Provide a linear programming model formulation and solve for an optimal solution.
Trade agricultural and manufacturing goods : Two countries, Home (H) and Foreign (F) trade agricultural and manufacturing goods (A and M, respectively). Production of either good requires skilled and unskilled labor. Unskilled workers can freely move from one sector to another, while skilled wo..
Benefits of strong dollar for the us : What are the benefits of strong dollar for the US?  What are the costs? The dominance of the dollar can lead to a dilemma for policymakers?
Which affect free cash flows to equity alone : Which of the following items affect free cash flows to debt and equity holders? Which affect free cash flows to equity alone? Explain why and how.
Due to improved technology intel can produce : Due to improved technology Intel can produce microchips cheaper than before. Which of the following statements is true?

Reviews

Write a Review

Financial Management Questions & Answers

  Powertool is the largest us manufacturer of industrial hand

powertool is the largest us manufacturer of industrial hand tools. its sales force is strong but clients have

  What are the transaction costs in index arbitrage activity

Compute the ‘fair’ value of the two nearest to expiration futures contracts on the S&P500 Index (SPX) using SPX as the underlying asset. What are the transaction costs in index arbitrage activity?

  Expected cash inflows-what is projects discounted payback

Project K costs $48,152.88, its expected cash inflows are $10,000 per year for 10 years, and its WACC is 9%. What is the project's IRR? Project K costs $35,000, its expected cash inflows are $10,000 per year for 8 years, and its WACC is 9%. What is t..

  Software package tied to satellite global positioning system

Joshua Trucking has chosen a new software package tied to satellite global positioning system (GPS), in order to monitor its fleet. The software will be outdated after three years and replaced.

  Weighted average cost of capital assuming no corporate taxes

A firm has an asset base with a market value of $5.3 million. Its debt is worth $2.5 million. If $0.8 million is paid in interest annually and the shareholders expect a 16% annual return, what is the weighted average cost of capital assuming no corpo..

  What is the intrinsic value of the option

What is the intrinsic value of the option and what is the option's time premium at this price - What is the current selling price for a) and b)?

  Expansion of the commercial paper market

What factors contribute to an expansion of the commercial paper market and what factors cause a contraction in the commercial paper market?

  Eileen ponders mutual funds

Eileen Mahurin is the director of a major charitable organization in Knoxville, Tennessee. A single mother of one young child, she earns what could best be described as a modest income. Because charitable organizations aren’t known for their generous..

  What is your return assuming dividend of per share is paid

Suppose the call money rate is 4.5 percent, and you pay a spread of 2.5 percent over that. You buy 600 shares of stock at $78 per share. You put up $18,000. One year later, the stock is selling for $86 per share and you close out your position. What ..

  What is the appropriate cost of capital for the valuation

The average unlevered beta of publicly traded Sodium Chlorate businesses is 0.94. Assume zero debt beta. The target capital structure that is appropriate for Collinsville plant is 35% debt and 65% equity. Assume a risk-free rate of 9.5% and market ri..

  Straight-line depreciation with an expected salvage value

WCX, Inc. is considering the replacement of its old stamping machine with a new one. The old machine was purchased 3 years ago for $62,000 and was expected to last for 8 years. The old machine has been depreciated using straight-line depreciation wit..

  Sole owner of all-equity firm-debt is secured by the firm

Suppose that you are the sole owner of an all-equity firm, the assets of which are worth $500,000. The ROA is 15% per year paid as a dividend to you. If you have the firm issue $100,000 of debt at 6%, the interest expense will be paid by the firm out..

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