Two Mining Fields, Field a and Field B of a Coal

question 31

Essay

Two mining fields, field A and field B of a coal mining company produce Lignite and Bituminous coal. The operating cost per day for field A and field B are $55,000 and $45,000, respectively. The recent records at the company indicate that the mining field A can produce 250 tons of Lignite along with 300 tons of Bituminous coal per day whereas the mining field B can produce 200 tons of Lignite along with 450 tons of Bituminous coal per day. The demand for Lignite is expected to be 120,000 tons and for Bituminous coal, it is expected to be 170,000 tons. The expected demand should be met. To minimize the operating costs of the mining fields, how many days does the company need to operate each of these fields?

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Definitions:

Investment Account

An account held by an individual or entity with a financial institution, primarily used for holding and trading securities, stocks, bonds, and other investments.

Percent Ownership

The proportion of a company's shares owned by an individual or entity, often expressed as a percentage of the total shares outstanding.

Adjusted Book Value

The net worth of a company calculated by adjusting assets and liabilities to their market values rather than their book values.

Stock Issuance

The process by which a company releases its shares to the public or existing shareholders, often to raise capital.