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Exhibit 8.1
The following questions pertain to the problem and spreadsheet below.
A company makes products A and B from 2 resources,labor and material.The company wants to determine the selling price which will maximize profits.A unit of A costs 25 to make and demand is estimated to be 20 ? .10 * Price of A.A unit of B costs 18 to make and demand is estimated to be 30 ? .07 * Price of B.The utilization of labor and materials and the available quantity of resources is shown in the table.A reasonable price for the products is between 100 and 200.
Let X1 = demand for As and X2 = demand for Bs.Let P1 = price for As and P2 = price for Bs
-An investor wants to determine how much interest he must earn to be able to make the payments on a 10-year mortgage which has increasing annual payments.The problem is summarized in the accompanying spreadsheet.The investor has enough money to make an initial investment of $9,000 and hopes he can earn 12%,compounded quarterly,on his investments.He would like to know how low his annual return can be and still allow him to make his payments from interest income.What constraint must be entered in the Risk Solver Platform RSP) task pane?
Kidneys
Pair of organs located in the abdomen of vertebrates, primarily involved in filtering waste products from the blood and excreting them in urine.
Conserve Water
The process of saving water to minimize usage and maintain its availability.
Reabsorbed
The process by which substances are taken back into the body tissues, particularly during the filtration process in the kidneys.
Water
A transparent, odorless, tasteless liquid compound of hydrogen and oxygen, vital for all known forms of life and used in many industrial processes.
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