A Freelance Writer Must Choose How to Spend Her Time

question 69

Multiple Choice

A freelance writer must choose how to spend her time working on several different types of projects.
Newspaper stories take 3 hours to write and pay a flat rate of $45 per story. Magazine articles take much longer to write (25 hours) but pay significantly better ($400 per article) . Proofreading is often tedious, but the writer can always find proofreading jobs that pay $20 per hour. The writer wants to maximize her income, but doesn't want to work more than 45 hours per week. Additionally, she dislikes proofreading so she would like to spend no more than 7 hours per week on that task. Both newspaper stories and magazine articles must be completed in the week they are started (HINT: use an integer constraint to be sure that all newspaper and magazine jobs are finished within a week) .
Which of the following is the objective function for the writer's problem?

• A) Max R = 45N + 400M − 20P
• B) Min R = 3N + 25M + P
• C) Max R = 45N + 400M + 20P
• D) Min R = 3N + 25M + 20P
• E) Max R = 3N + 400M + 20P

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Definitions:

Fixed Assets

Fixed assets are long-term tangible assets intended for use in the production or supply of goods or services, not easily converted to cash within a year.

Residual Value

The estimated salvage value of an asset after its useful life is over.

Fully Depreciated

Describes an asset that has reached the end of its useful life, with its cost fully expensed against income over its defined accounting period.

Equipment

Tools, machinery, and other durable assets used by a business in its operations to produce goods or services.