Furnco manufactures desks and chairs. each desk uses 4 units of wood, and each chair uses 3. a desk contributes $40 to profit, and a chair contributes $25. marketing restrictions require that the number of chairs produced be at least twice the number of desks produced. there are totally 20 units of wood are available. let x1 = number of desks produced, x2 = number of chairs produced. note: for all questions in this homework assignment, you do not need to consider integrality constraints (i. e., constraints that require variables to be of integer values). (a) formulate an lp to maximize furnco’s profit: define the variables, write down the objective function, and all constraints. (b) is (0, 0) a feasible solution? (c) is (−3, 2) a feasible solution? (d) is (2, 4) a feasible solution? 2. u. s. labs manufactures mechanical he

You have $22,000 to invest in a stock portfolio. your choices are stock x with an expected return of 11 percent and stock y with an expected return of 13 percent. if your goal is to create a portfolio with an expected return of 11.74 percent, how much money will you invest in stock x? in stock y?

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

Coop inc. owns 40% of chicken inc., both coop and chicken are corporations. chicken pays coop a dividend of $10,000 in the current year. chicken also reports financial accounting earnings of $20,000 for that year. assume coop follows the general rule of accounting for investment in chicken. what is the amount and nature of the book-tax difference to coop associated with the dividend distribution (ignoring the dividends received deduction)?