A Pharmaceutical Company Produces a Drug from Four Chemicals

question 11

Essay

A pharmaceutical company produces a drug from four chemicals.Today the company must produce 1000 pounds of the drug.The three active ingredients in the drug are labeled A,B,and C.By weight,at least 8% of the drug must consist of A,at least 4% must consist of B,and at least 2% must consist of C.The cost per pound of each chemical and the amount of each active ingredient in 1 pound of each chemical are given below.It is necessary that at least 100 pounds of chemical 2 be used. Determine the cheapest way of producing today's batch of this drug.

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Definitions:

Cash Flows

The movement of cash into or out of a business, project, or financial product as it generates income or pays expenses.

Operating Activity

Pertains to the core business activities of a company, such as selling goods or providing services, which generate revenue.

Income Taxes

Taxes imposed by the government on the income generated by individuals, businesses, and other entities within their jurisdiction.

Statement of Cash Flows

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company, showing how the company's operations are running, where its money is coming from, and how it is being spent.