A Company Has the Following Inputs and Cost Structure They Must Also Use the Following Minimum Quantities

question 62

Essay

A company has the following inputs and cost structure.
$$\begin{array} { l l l l } \text { Product } & \mathrm { X } & \mathrm { Y } & \mathrm { Z } \\\text { Ingredient A } & 4 & 2 & 8 \\\text { Ingredient B } & 2 & 3 & 3 \\\text { Ingredient C } & 4 & 5 & 3 \\\text { Ingredient D } & 7 & 5 & 7 \\\text { Cost per unit } & 0.25 & 0.21 & 0.69\end{array}$$ They must also use the following minimum quantities.
A 100, B 120, C 140, D 160
The is also a maximum of Z of 200 units.
c) Calculate how many of each product (X, Y, Z) should be produced.
d) How much is the minimized total cost?

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Definitions:

Diversification

The strategy of spreading investments among various financial assets to reduce risk.

Probability Distribution

A mathematical function that outlines every potential value and their probabilities that a random variable might assume across a specified interval.

Statistical Representation

The use of graphical or numerical methods to display and summarize data, making it easier to understand and interpret.

Average Investor's Expected Return

The anticipated amount of profit or loss an investor predicts to make from an investment, based on historical data and future projections.