Answer and Explanation:
The computation of the missing amount is as follows:
As we know that
The total manufacturing cost = Direct Materials Used + Direct Labor Used + Factory Overhead
So,
(1)
= $42,700 + $64,200 + $52500
= $159,400
(2)
= $298,000 - $78,100 - $144,000
= $75,900
(3)
= $314,000 - $57,400 - $113,000
= $143,600
Answer:
(a) Linear model

Subject to:



(b) Standard form:

Subject to:




Explanation:
Given

Solving (a): Formulate a linear programming model
From the question, we understand that:
A has a profit of $9 while B has $7
So, the linear model is:

Subject to:



Where:


Solving (b): The model in standard form:
To do this, we introduce surplus and slack variable "s"
For
inequalities, we add surplus (add s)
Otherwise, we remove slack (minus s)
So, the standard form is:
So, the linear model is:

Subject to:




Answer:
A. Buy a call
Explanation:
In the case when the investor purchase a call on the stock so the investor has the right to purchase for repurchase for a fixed price
Also the right way is to hedge a non-realized profit for a stock position i.e. short for purchasing a call
Therefore in the given situation, the correct option is A.