Quickbrush Paint Company Makes a Profit of $2 Per Gallon

question 28

Essay

Quickbrush Paint Company makes a profit of $2 per gallon on its oil-base paint and $3 per gallon on its water-base paint. Both paints contain two ingredients, A and B. The oil-base paint contains 90 percent A and 10 percent B, whereas the water-base paint contains 30 percent A and 70 percent B. Quickbrush currently has 10,000 gallons of ingredient A and 5,000 gallons of ingredient B in inventory and cannot obtain more at this time. The company wishes to use linear programming to determine the appropriate mix of oil-base and water-base paint to produce to maximize its total profit. How much oil-based and water-based paint should the Quickbrush make?

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Definitions:

Date of Payment

The specific date on which a declared dividend is paid out to shareholders or a debt obligation is fulfilled.

Ex-Dividend

A status indicating that a stock is trading without the right to receive the most recently declared dividend.

Declared Dividends

Dividends announced by a company's board of directors that are to be paid out to shareholders.

High-Dividend-Payout

Strategy by which a firm distributes a significant portion of its profits in the form of dividends to its shareholders.