Formulate the Following as a Linear Program

question 89

Essay

Formulate the following as a linear program.
Joe's Sports Shop is sponsoring a weekly boomerang-throwing contest as part of its spring promotions. Anyone may enter, but the boomerangs used must be purchased at the shop. Demand is unlimited. Two models can be made: the regular model (with a profit of $2 each) and the super model (which yields a $5 profit). However, production facilities are limited. A regular boomerang requires 1 hour of carving and 2 hours of finishing, while a super boomerang takes 3 hours to carve and 2 hours to finish. The skilled crafters employed by the shop have indicated they will spend no more than 75 hours carving and 100 hours finishing boomerangs per week. The owner wishes to allocate production in order to maximize profits.

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Definitions:

Accrued Interest

The amount of interest that has accumulated on a bond or loan but has not yet been paid by the borrower.

Inverse Floaters

Bonds that have coupon rates that move inversely to some reference rate, typically a short-term interest rate.

Coupon Rates

The annual interest rate paid on a bond, expressed as a percentage of the face value.

Interest Rates

The charge, as a percentage of the principal sum, levied by a lender on a borrower for asset usage.