Q.A portfolio manager is trying to balance investments between bonds, stocks and cash. The return on bonds is 9 percent, 12 percent on stocks, and 3 percent on cash. The total portfolio is $1 billion, and he or she must keep 10 percent in cash in accordance with company policy. The fund's prospectus promises that stocks cannot exceed 75 percent of the portfolio. Solve this investment decision as a linear programming problem. Download the Answer Report 9% 12% 3% Balance Totoal profit r S C Total Port $1billion Cash accord cant exceed Contraints 10% 75% of port 9% O x1 x2 12% B 3% LHS . . RHS 1,000,000,000 10% 75%

In early 20X1, Tech PC, a computer manufacturer, signed a contract with Forward University to ship 300 computers for a total price of CU 600,000(2,000 CU per computer). Due to the necessary preparatory work, Forward University agreed to ship computers in 3 separate shipments over the next 3 months (100 computers in each shipment). Maju Jaya Universityacquire control of the computer during delivery (FOB Shipping point). After the first shipment was made, Maju Jaya University and Tech PC changed the contract. Tech PC will supply an additional 200 computers (500 total). Price for an additional 200 computers agreed to be CU 280,000, to CU 1,400 per computer after a 30% discount. Tech PC provides a 30% discount for additional shipping because it hopes to collaborate with Maju Jaya University in the future. As of December 31, 20X1, Tech PC has shipped 400 computers (300 computers as initially agreed and 100 computers under contract amendment). Based on the above case, answer the following…

Question 5: Suppose a brewery uses a Cobb-Douglas production function for his production. He studies the production process and finds the following. An additional machine-hour of fermentation capacity would increase output by 500 bottles per day (i.e. MPK = 500). An additional man-hour of labor would increase output by 1000 bottles per day (i.e. MPL = 1000). The price of a man-hour of labor is $50 per hour. The price of a machine-hour of fermentation capacity is $5 per hour. 3. Suppose that the price of a machine-hour of fermentation capacity rises to $25 per hour. How does this change the answer from part 1?

Ch.6 Q5