=2.12. The Primo Insurance Company is introducing two new product lines: special risk insurance and mortgages. The expected profit is $5 per unit on special risk insurance and

$2 per unit on mortgages.

Management wishes to establish sales quotas for the new product lines to maximize total expected profit. The work requirements are shown below:

a. Identify verbally the decisions to be made, the constraints on these decisions, and the overall measure of performance for the decisions.

b. Convert these verbal descriptions of the constraints and the measure of performance into quantitative expressions in terms of the data and decisions.

Work-Hours per Unit Special Work-Hours Department Risk Mortgage Available Underwriting 3 2 2,400 Administration 0 1 800 Claims 2 0 1,200

c. Formulate and solve a linear programming model for this problem on a spreadsheet.

d. Formulate this same model algebraically.