1). George Johnson recently inherited a large sum of money; he wants to use a portion of this money to set up a trust fund for his two children. The trust fund has two investment options: (1) a bond fund and (2) a stock fund. The projected returns over the life of the investments are 6 percent for the bond fund and 10 percent for the stock fund. Whatever portion of the inheritance he finally decides to commit to the trust fund, he wants to invest at least 30 percent of that amount in the bond fund. In addition he wants to select a mix that will enable him to obtain a total return of at least 7.5 percent.

A) Formulate a linear programming model that can be used to determine the percentage that should be allocated to each of the possible investment alternatives

B) Solve the problem using the graphical solution procedure.

Geraldine Moog is paid a commission of 9% on her net sales and is authorized to draw up to $800 a month. What is the amount due to Geraldine at the end of a month in which she drew $720, had gross sales of $12 660, and sales returns of $131.20?