Question
Plan A B fire/theft 21,000 34,000 liability 156,000 132,000 monrthly premium 80 72 Premiums are sold in units. For example, one can buy one unit
Plan | A | B |
fire/theft | 21,000 | 34,000 |
liability | 156,000 | 132,000 |
monrthly premium | 80 | 72 |
Premiums are sold in units. For example, one can buy one unit of plan A insurance for $80 $ 80 per month and receive $21,000 $ 21,000 in Theft/Fire insurance. Two units of plan A insurance cost $160 $ 160 per month and give $42,000 $ 42,000 in Theft/Fire insurance. The company wants at least $689,000 $ 689,000 in coverage for Theft/Fire insurance and $3,792,000 $ 3,792,000 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 purchase__units of plan A and __units of plan B. What is the minimum monthly premium for the company? (Note: your answer is a dollar amount and should include a dollar symbol).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started