Solve the Linear Programming Problem

question 376

Multiple Choice

Solve the linear programming problem.
-Zach is planning to invest up to $45,000 in corporate and municipal bonds. The least he will invest in corporate bonds is $7000 and he does not want to invest more than $27,000 in corporate bonds. He also does not want to
Invest more than $34,262 in municipal bonds. The interest is 8.6% on corporate bonds and 6.2% on municipal
Bonds. This is simple interest for one year. What is the maximum income?

• A) $30,438
• B) $21,438
• C) $3438
• D) $10,206

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Definitions:

Predetermined Overhead Rate

An estimated rate used to apply manufacturing overhead to products or job orders, calculated before a period begins based on expected costs and activity levels.

Traditional Costing System

A method of cost accounting that allocates factory overhead to products based on volume-driven measures such as machine hours or labor hours.

Manufacturing Overhead

Consists of all manufacturing costs that are not directly associated with the production of goods, including indirect labor, maintenance, and factory utilities.

Direct Labor-Hours

The compiled working hours of employees directly active in manufacturing tasks.