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    Problem 22222

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    Isabelle Candelaria
    On January 1, 2011, Dean Company purchased ten-year bonds with a face value of ₱1,000,000 and a stated interest rate of 8% per year payable semiannually July 1 and January 1. The bonds were acquired to yield 10%. Present value factors are as follows

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    Problem 22222

    Uploaded by

    Isabelle Candelaria
    402 views3 pages
    On January 1, 2011, Dean Company purchased ten-year bonds with a face value of ₱1,000,000 and a stated interest rate of 8% per year payable semiannually July 1 and January 1. The bonds were acquired to yield 10%. Present value factors are as follows

    Original Title

    PROBLEM 22222

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    On January 1, 2011, Dean Company purchased ten-year bonds with a face value of ₱1,000,000 and a stated interest rate of 8% per year payable semiannually July 1 and January 1. The bonds were acquired to yield 10%. Present value factors are as follows

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    402 views3 pages

    Problem 22222

    Uploaded by

    Isabelle Candelaria
    On January 1, 2011, Dean Company purchased ten-year bonds with a face value of ₱1,000,000 and a stated interest rate of 8% per year payable semiannually July 1 and January 1. The bonds were acquired to yield 10%. Present value factors are as follows

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    PROBLEM 2:

    A manufacturer produces bicycles and motorcycles, each of  which must be


    processed through two machine centers.  Machine Center 1 has a maximum of 120
    hours availability and  Machine Center 2 has a maximum of 180
    hours availability. A  bicycle requires six (6) hours in Machine Center 1 and three (3) 
    hours in Machine Center  2. Manufacturing a motorcycle  requires
    four (4) hours in Machine Center 1 and 10 hours in  Machine Center 2. If the profit is
    P450 for each bicycle and  P2,500 for a motorcycle, determine the number of bicycles
    and  the number
    of motorcycles to produce to maximize the profit,  considering that the number of motor
    cycles must not exceed 12  units and bicycles must be at least 10 units.

    ANSWER-SOLUTION TO PROBLEM 2:

    Let x = number of bicycles to produce to maximize the profit

    Let y = number of motorcycles to produce to maximize the profit

    Machine Center 1 Machine Center 2 Profit

    Bicycles 6 3 450

    Motorcycles 4 10 2500

    Objective function :

    Maximize P=450x+2500y 

    Subject to:

    6x+4y<=120                
    3x+10y<=180              
    x>=10                         
    y<=12                          
    y>=0                           

    Reformulate :

    6x+4y+S1+0S2 = 120 
    3x+10y+0S1+S2 = 180
    Decision:

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