Question

In: Statistics and Probability

Floataway Tours has $420,000 that can be use to purchase new rental boats for hire during...

Floataway Tours has $420,000 that can be use to purchase new rental boats for hire during the summer. The boats can be purchased from two different manufacturers. Floataway Tours would like to purchase at least 50 boats and would like to purchase the same number from Sleekboat as from Racer to maintain goodwill. At the same time,Floataway Tours wishes to have a total seating capacity of at least 200.

Formulate this problem as a linear program.

        Maximum      Expected

     Boat           Builder       Cost      Seating      Daily Profit

Speedhawk   Sleekboat     $6000         3                   $ 70

Silverbird      Sleekboat     $7000         5                   $ 80

Catman          Racer            $5000         2                   $ 50

Classy            Racer            $9000         6                   $110

Solutions

Expert Solution

orchestra answered 1 year ago
Next > < Previous

Related Solutions

discuss the Formation of the hire purchase agreement in Malaysia and the before, during and after...
discuss the Formation of the hire purchase agreement in Malaysia and the before, during and after the agreement referring to malaysian hire purchase agreement
Vernon Company has an opportunity to purchase a forklift to use in its heavy equipment rental...
Vernon Company has an opportunity to purchase a forklift to use in its heavy equipment rental business. The forklift would be leased on an annual basis during its first two years of operation. Thereafter, it would be leased to the general public on demand. Vernon would sell it at the end of the fifth year of its useful life. The expected cash inflows and outflows follow: Year Nature of Item Cash Inflow Cash Outflow 2018 Purchase price $ 94,800 2018...
Vernon Company has an opportunity to purchase a forklift to use in its heavy equipment rental...
Vernon Company has an opportunity to purchase a forklift to use in its heavy equipment rental business. The forklift would be leased on an annual basis during its first two years of operation. Thereafter, it would be leased to the general public on demand. Vernon would sell it at the end of the fifth year of its useful life. The expected cash inflows and outflows follow: Year Nature of Item Cash Inflow Cash Outflow 2018 Purchase price $ 94,800 2018...
a) Monster Corp is considering buying a new machine for $420,000. The machine has an 8...
a) Monster Corp is considering buying a new machine for $420,000. The machine has an 8 year life (S/L)and zero salvage value. The machine will allow monster to save $75,000/year in material and labor. Monster will sell an old machine for $55,000. The sale will take place on the same day the new machine is bought. The old machine a NBV = 0. The new machine will require an overhaul in year 5 = $20,000. Monster has a 30% tax...
A firm can either use their own employees to keep the office clean, or hire a...
A firm can either use their own employees to keep the office clean, or hire a cleaning service to do it. Assume that as businesses reopen during a global pandemic, health and safety regulations require more frequent cleanings for reopened business, while at the same time there is a decrease in the wages firm must pay for low and semi-skilled workers. What is the predicted effect of this on the price and quantity in the market for cleaning services?
Currently, Atlas Tours has $6.76 million in assets. This is a peak six-month period. During the...
Currently, Atlas Tours has $6.76 million in assets. This is a peak six-month period. During the other six months, temporary current assets drop to $570,000.         Temporary current assets $1,370,000   Permanent current assets 2,140,000   Capital assets 3,250,000          Total assets $6,760,000    Short-term rates are 5 percent. Long-term rates are 7 percent. Annual earnings before interest and taxes are $1,250,000. The tax rate is 38 percent. a. If the assets are perfectly hedged throughout the year, what will earnings...
Currently, Atlas Tours has $6.04 million in assets. This is a peak six-month period. During the...
Currently, Atlas Tours has $6.04 million in assets. This is a peak six-month period. During the other six months, temporary current assets drop to $480,000.         Temporary current assets $1,280,000   Permanent current assets 1,960,000   Capital assets 2,800,000          Total assets $6,040,000    Short-term rates are 5 percent. Long-term rates are 7 percent. Annual earnings before interest and taxes are $1,160,000. The tax rate is 38 percent. a. If the assets are perfectly hedged throughout the year, what will earnings...
Currently, Atlas Tours has $6.12 million in assets. This is a peak six-month period. During the...
Currently, Atlas Tours has $6.12 million in assets. This is a peak six-month period. During the other six months, temporary current assets drop to $490,000.         Temporary current assets $1,290,000   Permanent current assets 1,980,000   Capital assets 2,850,000          Total assets $6,120,000    Short-term rates are 4 percent. Long-term rates are 5 percent. Annual earnings before interest and taxes are $1,170,000. The tax rate is 38 percent. a. If the assets are perfectly hedged throughout the year, what will earnings...
Gluon Inc. is considering the purchase of a new high pressureglueball. It can purchase the...
Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $60,000 and sell its old low-pressure glueball, which is fully depreciated, for $10,000. The new equipment has a 10-year useful life and will save $14,000 a year in expenses. The opportunity cost of capital is 11%, and the firm’s tax rate is 21%. What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately. (Do...
Drake is a department manager in a company which has recently decided to hire a new...
Drake is a department manager in a company which has recently decided to hire a new analyst. After interviewing all candidates, Drake recommended the company hire Anne, but senior management preferred to hire Beth. Drake argued that Beth is an inferior choice, but agreed to accept her for a trial period of six months. At the end of the trial period, Drake evaluated Beth’s performance as poor. Although this evaluation may have been fair, it is also possible that it...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT