Exhibit 3.1 The Following Questions Are Based on This Problem and Accompanying

question 59

Multiple Choice

Exhibit 3.1
The following questions are based on this problem and accompanying Excel windows.
Jones Furniture Company produces beds and desks for college students.The production process requires carpentry and varnishing.Each bed requires 6 hours of carpentry and 4 hour of varnishing.Each desk requires 4 hours of carpentry and 8 hours of varnishing.There are 36 hours of carpentry time and 40 hours of varnishing time available.Beds generate $30 of profit and desks generate $40 of profit.Demand for desks is limited,so at most 8 will be produced.
Let ^X₁ ^{= Number of Beds to produce} X₂ = Number of Desks to produce
The LP model for the problem is
MAX: ^{30 X}₁ ^{+ 40 X}₂
Subject to: ^{6 X}₁ ^{+ 4 X}₂ ^{≤ 36 carpentry)}
4 X₁ + 8 X₂ ≤ 40 varnishing)
X₂ ≤ 8 demand for desks)
X₁,X₂ ≥ 0

-You have been given the following linear programming model.
MAX: ^{8 X}₁ ^{+ 5 X}₂
Subject to: ^{3 X}₁ ^{+ 5 X}₂ ^{= 54}
11 X₁ + 10 X₂ ≤ 144 X₁ ≥12 X₂
X₁,X₂ ≥ 0
This formulation is:

• A)not an LP formulation.Pre-processing is required to make it linear.
• B)a transportation problem
• C)a transshipment problem
• D)the assignment problem

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Definitions:

Fair Market Price

The price of a good or service that is agreed upon by both buyer and seller, under no pressure, in an open and competitive market.

Redeemed

The act of exchanging something, such as a bond or coupon, for value, often for cash or goods.

Unamortized Discount

The portion of a bond discount that has not yet been expensed to interest expense over the bond's life.

Carrying Value

The book value of an asset as reflected in a company's financial statements, calculated as the original cost minus accumulated depreciation.