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The Primo Insurance Company is introducing two new product lines: special risk insurance and mortgages. The expected profit is $5 per unit on special
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: Work-Hours per Unit Department Special Risk Underwriting 3 Mortgage 2 Work-Hours Available 2,450 Administration Clains 1 850 2 1,250 Special Risk Mortgage Unit Profit $5 $2 Underwriting Administration Clains Work-Hours per Unit Hours Available 3 2 2,450 850 2 1,250 Click here for the Excel Data File Formulate and solve a linear programming model for this problem on a spreadsheet. a. Determine the sales quota for special risk and mortgage. Note: Round your answers to 2 decimal places. Special Risk Mortgage Sales Quota b. Determine the total profit Total profit
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