Solve the Linear Programming Problem $\$ 40,000$ In Corporate and Municipal Bonds

question 16

Multiple Choice

Solve the linear programming problem.
-Zach is planning to invest up to $\$ 40,000$ in corporate and municipal bonds. The least he will invest in corporate bonds is $\$ 8000$ and he does not want to invest more than $\$ 25,000$ in corporate bonds. He also does not want to invest more than $\$ 33,621$ in municipal bonds. The interest is $8.6 \%$ on corporate bonds and $6.3 \%$ on municipal bonds. This is simple interest for one year. What is the maximum income?

• A) \(\$ 28,095\)
• B) \(\$ 18,095\)
• C) \(\$ 3095\)
• D) \(\$ 11,205\)

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Definitions:

Sales Mix

The combination of different products or services that a company sells, typically analyzed to determine the most profitable mix.

Sales Mix

The combination of products or services that a company sells, reflecting the variation in profit margins for each.

Annual Fixed Expenses

Costs that do not vary with the level of production or sales over a year, such as rent, insurance, and salaried personnel wages.

Break-Even

The point at which total costs equal total revenue, resulting in neither profit nor loss.