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EastWind [94]
3 years ago
10

Andalus Furniture Company has two manufacturing plants, one at Aynor and another at Spartanburg. The cost in dollars of producin

g a kitchen chair at each of the two plants is given here. Aynor: Cost = 80Q1 + 7Q12 + 93 Spartanburg: Cost = 20Q2 + 3Q22 + 147
WhereQ1 = number of Chairs produced at Aynor
Q2 = Number of Chairs produced at SpartanburgAndalus needs to Manufacture a total of 40 Kitchen Chairs to met an order just received. Howmany chairs should be made at Aynor and how many should be made at Spartanburg in order tominimize production costs.
Min + 100) +s.t. Q1 + Q2 = 40Q1,Q2≥0

a. Using Excel Solver What is the optimal solution for this problem
Business
1 answer:
Bad White [126]3 years ago
5 0

Answer:

9 in Aynor and 31 in Spartanburg

Explanation:

we need to build the following:

    A              B           C

           units    COST

Aynor          9           =93 + 80*B2 + POWER(B2;2)*7

Spartanburg 31           =147 + 20*B2 + POWER(B2;2)*3

             =b2 + b3   = c2 + c3

We stablish that we want to minimize c3

changing cell b2 and b3

with the restriction that must be integer solution and b4 should equal 40

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Explanation:

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The firm with a 20% Debt and 80% Equity has the lowest degree of leverage.

<h3>What is a degree of leverage?</h3>

This means  how much a firm operating income changes in response to a change in sales.

Because the Firm C has a low debt, this means its has the lowest degree of leverage when compared to others.

Therefore, the Option C is correct.

Missing options "90% Debt, 10% Equity

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20% Debt, 80% Equity

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Read more about degree of leverage

<em>brainly.in/question/8720374</em>

#SPJ1

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Stolb23 [73]

Answer:

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Explanation:

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