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A businessman is considering opening a small specialized trucking firm.To make the firm profitable,it must have a daily trucking capacity of at least 84,000 cubic feet.Two types of trucks are appropriate for the specialized operation.Their characteristics and costs are summarized in the table below.Note that truck two requires three 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 that there are alternative optimal solutions.
a.Which optimal solution uses only one type of truck?
b.Which optimal solution utilizes the minimum total number of trucks?
c.Which optimal solution uses the same number of small and large trucks?
Compounded Annually
Refers to the process where the interest on an investment or loan is calculated annually and added to the principal, so that the balance doesn't merely grow by the initial rate of interest but by the interest on the interest as well.
Contributions
Contributions are amounts of money or resources given by individuals or entities to a common fund or cause, often for charity, investments, or pooling resources.
Investment
Allocation of resources, usually money, in expectation of a future financial return or benefit.
Ordinary Annuity
An annuity in which payments are made at the end of each period, such as monthly or annually, commonly found in loans and savings plans.
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