A company is considering two insurance plans with the following types of coverage and premiums:Fire/TheftLiabilityMonthly PremiumPlan A$26,000 $33,000$193,000 $137,000$70Plan B$62Premiums are sold in units. For example, one can buy one unit of plan A insurance for $70 per month and receive $26,000 in Fire/Theft insurance. Two units of plan A insurance cost $140 per month andgive $52,000 in Fire/Theft insurance.The company wants at least $760,000 in coverage for Fire/Theft insurance and $4,346,000 in coverage for liability insurance.How many units of each plan should be purchased to meet the needs of the company while minimizing cost?The company should purchaseunits of plan A andWhat is the minimum monthly premium for the company? $units of plan B.

Let,x be the units of plan A and y be the units of plan B.Then,Objective Function: Min…

A company is considering two insurance plans with the following types of coverage and premiums: Plan A Plan B Fire/Theft Liability $193,000 $137,000 Monthly Premium $70 $62 $26,000 $33,000 Premiums are sold in units. For example, one can buy one unit of plan A insurance for $70 per month and receive $26,000 in Fire/Theft insurance. Two units give $52,000 in Fire/Theft insurance. The company wants at least $760,000 in coverage for Fire/Theft insurance and $4,346,000 in coverage for liability insurance.

A company is considering two insurance plans with the following types of coverage and premiums: Plan A Plan B Fire/Theft Liability $193,000 $137,000 Monthly Premium $70 $62 $26,000 $33,000 Premiums are sold in units. For example, one can buy one unit of plan A insurance for $70 per month and receive $26,000 in Fire/Theft insurance. Two units give $52,000 in Fire/Theft insurance. The company wants at least $760,000 in coverage for Fire/Theft insurance and $4,346,000 in coverage for liability insurance.

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

See similar textbooks

Similar questions

If a patient had a PPO plan with a 500 dollar in network deductible, and a 90 percent coinsurance with a 1000 out of networks deductible and 70 percent co-insurance , how much would you pay for a 34,000 bill from an innetwork doctor.
Adirondack Savings Bank (ASB) has $1 million in new funds that must be allocated to home loans, personal loans, and automobile loans. The annual rates of return for the three types of loans are 6% for home loans, 10% for personal loans, and 11% for automobile loans. The bank's planning committee has decided that at least 40% of the new funds must be allocated to home loans. In addition, the planning committee has specified that the amount allocated to personal loans cannot exceed 60% of the amount allocated to automobile loans. (a) Formulate a linear programming model that can be used to determine the amount of funds ASB should allocate to each type of loan to maximize the total annual return for the new funds. If the constant is "1" it must be entered in the box. If your answer is zero enter "0". Let H = amount allocated to home loans P = amount allocated to personal loans A = amount allocated to automobile loans Max s.t. Home Personal Automobile H + H + H + % H + P + P + P + P + (b)…
Adirondack Savings Bank (ASB) has $1 million in new funds that must be allocated to home loans, personal loans, and automobile loans. The annual rates of return for the three types of loans are 5% for home loans, 13% for personal loans, and 7% for automobile loans. The bank's planning committee has decided that at least 40% of the new funds must be allocated to home loans. In addition, the planning committee has specified that the amount allocated to personal loans cannot exceed 60% of the amount allocated to automobile loans. (a) Formulate a linear programming model that can be used to determine the amount of funds ASB should allocate to each type of loan to maximize the total annual return for the new funds. If the constant is "1" it must be entered in the box. If your answer is zero enter "0". Let H = amount allocated to home loans P = amount allocated to personal loans A = amount allocated to automobile loans Маx H + P + s.t. H + A 2 Minimum Home Loans P + AS Personal Loan…
Adirondack Savings Bank (ASB) has $1 million in new funds that must be allocated to home loans, personal loans, and automobile loans. The annual rates of return for the three types of loans are 7% for home loans, 12% for personal loans, and 9% for automobile loans. The bank’s planning committee has decided that at least 40% of the new funds must be allocated to home loans. In addition, the planning committee has specified that the amount allocated to personal loans cannot exceed 60% of the amount allocated to automobile loans. Assume that ASB has the original $1 million in new funds available and that the planning committee has agreed to relax the requirement that at least 40% of the new funds must be allocated to home loans by 1%. How much would the annual return change? How much would the annual percentage return change? Discuss. *
Mallory Manufacturing produces thermal tents and sleeping bags. The company’s products are in high demand due to the quality and durability of the products. Mallory estimates it could sell 600 tents per month and 600 sleeping bags per month. Following is information for each of these products: Tent Sleeping Bag Selling price per item $68 $43 Variable cost per item 49.5 29 Contribution margin per item $18.5 $14 Machine hours per item 1.1 0.8 Mallory has 800 machine hours available each month. If Mallory allocates its production capacity between the tents and sleeping bags so that it maximizes the company’s contribution margin, what will the contribution margin be? (a) $14000 (b) $13765 (c) $31273 (c) $19500
You currently drive 300 miles per week in a car that gets 15 miles per gallon of gas. You are considering buying a new fuel-efficient car for $12,000 (after trade-in on your current car) that gets 50 miles per gallon. Insurance premiums for the new and old car are $800 and $600 per year, respectively. You anticipate spending $1200 per year on repairs for the old car and having no repairs on the new car. Assume gas costs $3.50 per gallon. Over a five-year period, is it less expensive to keep your old car or buy the new car?
Tiger Funds Ltd. operates a number of mutual funds in high technology and in financial sectors. Hussein Roberts is a fund manager who runs a major fund that includes a wide variety of technology stocks. As fund manager he decides which stocks should be purchased for the mutual fund. The compensation plan for fund managers includes a first-year bonus for each stock purchased by the manager that gains more than 10% in the first six months it is held. Of those stocks that the company holds, 40% are up in value after being held for two years. In reviewing the performance of Mr. Roberts, they found that he received a first-year bonus for 60% of the stocks that he purchased that were up after two years. He also received a first-year bonus for 40% of the stocks he purchased that were not up after two years.What is the probability that a stock will be up after two years given that Mr. Roberts received a first-year bonus?