Tots Toys Makes a Plastic Tricycle That Is Composed of Three

question 21

Essay

Tots Toys makes a plastic tricycle that is composed of three major components: a handlebar-front wheel-pedal assembly,a seat and frame unit,and rear wheels.The company has orders for 12,000 of these tricycles.Current schedules yield the following information: The company obviously does not have the resources available to manufacture everything needed for the completion of 12,000 tricycles so it has gathered purchase information for each component.Develop a linear programming model to tell the company how many of each component should be manufactured and how many should be purchased in order to provide 12,000 fully completed tricycles at the minimum cost.

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Definitions:

Section 1202

A section of the Internal Revenue Code providing an exclusion from federal income tax for gains from certain small business stock held for more than 5 years.

Section 1221 Asset

Properties or assets, as defined by the IRS, that are used in a trade or business and are held for more than one year.

Rental Property

Real estate property leased or rented out to tenants, generating income for the owner.

Business Inventory

Items that are held by a business for the purpose of sale or production.