Two Models of a Product - Regular (X)and Deluxe (Y)-

question 26

Multiple Choice

Two models of a product - Regular (X) and Deluxe (Y) - are produced by a company.A linear programming model is used to determine the production schedule.The formulation is as follows: The optimal solution is X = 100,Y = 0. How many units of the regular model would be produced based on this solution?

• A)0
• B)100
• C)50
• D)120
• E)None of the above

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Definitions:

Trading Securities

These are debt or equity securities that are purchased primarily for selling in the near term with the intent of generating short-term profits.

Held-to-maturity Securities

Debt securities which a company has the positive intent and ability to hold until maturity.

Debt Securities

Financial instruments representing money borrowed that must be repaid, typically with interest, such as bonds, bills, or notes.

Equity Securities

Equity securities are financial instruments that represent ownership in a company, such as stocks, giving holders the right to a proportion of the company’s profits.