Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Please do not solve with excel. T. ---------- 070233 (20 points) The SAVE-IT COMPANY operates a reclamation center that collects three types of solid waste

image text in transcribed

Please do not solve with excel.

T. ---------- 070233 (20 points) The SAVE-IT COMPANY operates a reclamation center that collects three types of solid waste materials and treats them so that they can be amalgamated into a salable product (treating and amalgamating are separate processes). Two different grades of this product can be made depending upon the mix of materials used. Although there is some flexibility in the mix for each grade, quality standards may specify the minimum or maximum amount allowed for the proportion of a material in the product grade (this proportion is the weight of the material expressed as a percentage of the total weight for the product grade). These specifications are given in the following table, along with the amalgamation cost and the selling price for each grade: Grade Specification Amalgamation Cost per pound ($) 3.00 Selling Price per Pound (S) 8.50 A Material 1: at most 30% of total Material 2: at least 40% of total Material 3: exactly 20% of total Material 1: Not more than 70% of total B 2.00 5.50 The reclamation center collects its solid waste materials from regular sources and so is normally able to maintain a steady rate for treating them. The following table gives the quantities available for collection and treatment each week, as well as the cost of treatment, for each type of material. Material Pounds per week available 3.000 2 2,000 1,000 Treatment cost per pound (S) 3.00 6.00 4.00 The Save-It Co. is solely owned by Green Earth, an organization devoted to dealing with environmental issues, so Save-It's profits are used to help support Green Earth's activities. Green Earth has raised contributions and grants, amounting to $30,000 per week, to be used exclusively to cover the entire treatment cost for the solid waste materials. The board of directors of Green Earth has instructed the management of Save-It to divide this money among the materials in such a way that at least half of the amount available of each material is actually collected and treated. Management wants to determine the amount of each product grade to produce and the exact mix of materials to be used for each grade so as to maximize the total weekly profit. 4 . T. ---------- 070233 (20 points) The SAVE-IT COMPANY operates a reclamation center that collects three types of solid waste materials and treats them so that they can be amalgamated into a salable product (treating and amalgamating are separate processes). Two different grades of this product can be made depending upon the mix of materials used. Although there is some flexibility in the mix for each grade, quality standards may specify the minimum or maximum amount allowed for the proportion of a material in the product grade (this proportion is the weight of the material expressed as a percentage of the total weight for the product grade). These specifications are given in the following table, along with the amalgamation cost and the selling price for each grade: Grade Specification Amalgamation Cost per pound ($) 3.00 Selling Price per Pound (S) 8.50 A Material 1: at most 30% of total Material 2: at least 40% of total Material 3: exactly 20% of total Material 1: Not more than 70% of total B 2.00 5.50 The reclamation center collects its solid waste materials from regular sources and so is normally able to maintain a steady rate for treating them. The following table gives the quantities available for collection and treatment each week, as well as the cost of treatment, for each type of material. Material Pounds per week available 3.000 2 2,000 1,000 Treatment cost per pound (S) 3.00 6.00 4.00 The Save-It Co. is solely owned by Green Earth, an organization devoted to dealing with environmental issues, so Save-It's profits are used to help support Green Earth's activities. Green Earth has raised contributions and grants, amounting to $30,000 per week, to be used exclusively to cover the entire treatment cost for the solid waste materials. The board of directors of Green Earth has instructed the management of Save-It to divide this money among the materials in such a way that at least half of the amount available of each material is actually collected and treated. Management wants to determine the amount of each product grade to produce and the exact mix of materials to be used for each grade so as to maximize the total weekly profit. 4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions