We Have a Number of Types of Items to Be

question 14

Essay

We have a number of types of items to be shipped as cargo. The total available weight in the truck is ten tons. We wish to determine the number of units of items to be shipped to maximize profit. $$\begin{array} { c c c } \text { Item } & \text { Weight (Tons) } & \text { Profit (1000s dollars) } \\\text { A } & 3 & 5 \\\text { B } & 4 & 7 \\\text { C } & 2 & 3\end{array}$$

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Definitions:

Straight-line Method

A method of depreciation that allocates an equal amount of the asset's cost to each year of its useful life.

Units-of-activity Method

A depreciation method that allocates an asset's cost based on its usage, activities, or units produced, rather than the passage of time.

Double-declining-balance Method

An accelerated depreciation method that doubles the depreciation expense compared to the straight-line method.

Depreciation Expense

Systematically dividing the expense of a tangible asset over the period it remains useful.