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1. An insurance company is introducing two new product lines: special risk insurance and mortgages. The expected profit is 30 per unit on special risk
1. An insurance company is introducing two new product lines: special risk insurance and mortgages. The expected profit is 30 per unit on special risk insurance and 12 per unit on mortgages. Management wishes to establish sales quotas for the new product lines to maximize total expected profit. The work requirements are as follows: a. Formulate a linear programming model for this problem. b. Use the graphical method to solve this model. 2. Consider the following problem, where the value of c1 has not yet been ascertained. Maximize: Z=c1x1+x2 subject to: 3x1+3x2183x1+6x230 and: x10,x20. Use graphical analysis to determine the optimal solution(s) for x1,x2 for the various possible values of c1(
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