Answer:
They should operate Mine 1 for 1 hour and Mine 2 for 3 hours to meet the contractual obligations and minimize cost.
Explanation:
The formulation of the linear programming is:
Objective function:
Restrictions:
- High-grade ore: 
- Medium-grade ore: 
- Low-grade ore: 
- No negative hours: 
We start graphing the restrictions in a M1-M2 plane.
In the figure attached, we have the feasible region, where all the restrictions are validated, and the four points of intersection of 2 restrictions.
In one of this four points lies the minimum cost.
Graphically, we can graph the cost function over this feasible region, with different cost levels. When the line cost intersects one of the four points with the lowest level of cost, this is the optimum combination.
(NOTE: it is best to start with a low guessing of the cost and going up until it reaches one point in the feasible region).
The solution is for the point (M1=1, M2=3), with a cost of C=$680.
The cost function graph is attached.
To remove almost all of the sodium and minerals
Answer: i. €0.11
ii. €1.08
Explanation:
i. If we get 1 krona for every $0.13 then how many krona do we get per dollar?
= 1/0.13
= 7.69 Krona is to $1
If $1 is 7.69 Krona and $1 is also €0.85 then that means that,
€ 0.85 = 7.69 Krona
So for each Krona exchanged, we get how many Euro,
= 0.85/7.69
= 0.11
For each Krona exchanged, we get €0.11
ii. Following the example of the first question,
if £1 is to $1.12 then how many pounds are a dollar?
= 1/1.12
= 0.89
£0.89 is equal to a dollar.
if €1 is to $1.04 then how many euros are a dollar?
= 1/1.04
= 0.96
€0.96 are equal to a dollar.
This means that,
£0.89 = €0.96
So for every British Pound exchanged we get how many Euros?
= 0.96/0.89
= 1.078
= €1.08
For every British pound Exchanged, we get €1.08
Answer:
$1,700,000
Explanation:
The computation of the NET accounts receivable (the cash realizable value) at December 31, 2019 is shown below:
= Account receivable - allowance for doubtful debts
= $2,000,000 - $300,000
= $1,700,000
By deducting the allowance for doubtful debts from the account receivable we can get the net account receivable or the cash realizable value
Therefore we ignored the bad debt expense
Answer:
$120 per unit
Explanation:
The computation of minimum acceptable transfer price is shown below:-
If the division of the transferor does not have spare capacity, the minimum transfer price is equal to variable cost per unit and the contribution margin per unit
Minimum transfer price = Variable cost per unit + (Selling price to outside customers - Variable cost per unit)
= $72 + ($120 - $72)
= $72 + $48
= $120 per unit
Therefore for computing the minimum transfer price we simply applied the above formula.
