A Stereo Mail Order Centre Has 8,000 Cubic Feet Available

question 104

Essay

A stereo mail order centre has 8,000 cubic feet available for storage of its private label loudspeakers. The ZAR3 speakers cost $295 each and require 4 cubic feet of space; the ZAR2ax speakers cost $110 each and require 3 cubic feet of space; and the ZAR4 model costs $58 and requires 1 cubic foot of space. The demand for the ZAR3 is at most 20 units per month. The wholesaler has $100,000 to spend on loudspeakers this month. Each ZAR3 contributes $105, each ZAR2ax contributes $50, and each ZAR4 contributes $28. The objective is to maximize total contribution. Write out the objective and the constraints.

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Definitions:

Slightly Positive

Referring to a modestly favorable outcome or result, often used in the context of financial results or economic indicators.

Capacity Swaps

Capacity swaps involve the exchange of production capacity or output between companies, usually to meet demand or manage surplus without the exchange of monetary payment.

Telecommunications Companies

Businesses that provide services in communication over long distances through phones, internet, cable, and other technologies.

Prematurely Recognize

Recording revenue or expenses in financial statements before the criteria for such recognition are fully met.