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Heart Start produces automated external defibrillators (AEDs)in each of two different plants (A and B).The unit production costs and monthly production capacity of the two plants are indicated in the table below.The AEDs are sold through three wholesalers.The shipping cost from each plant to the warehouse of each wholesaler along with the monthly demand from each wholesaler are also indicated in the table.How many AEDs should be produced in each plant,and how should they be distributed to each of the three wholesaler warehouses so as to minimize the combined cost of production and shipping? (a)Formulate this problem as a transportation problem by constructing the appropriate parameter table.(b)Formulate and solve a linear programming model in a spreadsheet for this problem.
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Tax Shield Approach
A financial strategy that utilizes deductible expenses, like interest, to reduce a company's taxable income, thereby lowering its tax liability.
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The cash generated from a company's normal business operations, indicating its ability to generate positive cash flow.
CCA Class
A classification system used in Canadian tax law for capital cost allowance, determining the depreciation rate for tax purposes of tangible capital assets.
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