A Businessman Is Considering Opening a Small Specialized Trucking Firm

question 12

Essay

A businessman is considering opening a small specialized trucking firm.To make the firm profitable,it is estimated that it must have a daily trucking capacity of at least 84,000 cu.ft.Two types of trucks are appropriate for the specialized operation.Their characteristics and costs are summarized in the table below.Note that truck 2 requires 3 drivers for long haul trips.There are 41 potential drivers available and there are facilities for at most 40 trucks.The businessman's objective is to minimize the total cost outlay for trucks.
Solve the problem graphically and note there are alternate optimal solutions.Which optimal solution:
a.uses only one type of truck?
b.utilizes the minimum total number of trucks?
c.uses the same number of small and large trucks?

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Definitions:

Tax Liability

The total amount of tax owed to a taxing authority, such as the government, based on taxable income and tax rate.

Tax Revenue

The income that is gained by governments through taxation, used to fund public services and government obligations.

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A government program that provides financial assistance to people with inadequate or no income, primarily the elderly, disabled, and families with dependent children.

Medicare

A federal health insurance program in the United States for people age 65 and older, and for some younger people with disabilities.