Question 1 A:

REGULAR PLAN

EXECUTIVE PLAN

Fixed Fee
for 1800mins =

Fixed Fee
for 2200mins =

Fee/mins after
extra mins =

$75.00

$150.00

$0.35

Fee/mins after
extra mins =

$0.30

Volume of mins
used/month =

3000

Volume of mins
used/month =

3000

Mins. Covered
by fixed fee =

1800

Mins. Covered
by fixed fee =

2200

remaining mins
charged/mins =

remaining mins
charged/mins =

800 of $105 on exp

Julie should chose1200
the executive plan because she will safe a cost
Total
variable
Total variable
( i.e:
495-390).
fee/month =

Total Expenses
per month =

$420.00

fee/month =

$240.00

$495.00

Total Expenses
per month =

$390.00

$105.00

Juli need to be indiffernt at that volume of minutes where the expenses of the two
plans are equal.
Fixed fee + (variable fee*extra volume)= total expenses
QUESTION 1B

1800
Volume of mins
0
1
2
3
1800
1801
1802
1803
1804
1805
1806

Regular

2200
75 Executive
150

75
75.35
75.7
76.05
76.4
76.75
77.1

150
150
150
150
150
150

1807
1808
1809
1810
1811
1812
1813
1814
1815
1816
1817
1818
1819
1820
1821
1822
1823
1824
1825
1826
1827
1828
1829
1830
1831
1832
1833
1834
1835
1836
1837
1838
1839
1840
1841
1842
1843
1844
1845
1846
1847
1848
1849
1850
1851

77.45
77.8
78.15
78.5
78.85
79.2
79.55
79.9
80.25
80.6
80.95
81.3
81.65
82
82.35
82.7
83.05
83.4
83.75
84.1
84.45
84.8
85.15
85.5
85.85
86.2
86.55
86.9
87.25
87.6
87.95
88.3
88.65
89
89.35
89.7
90.05
90.4
90.75
91.1
91.45
91.8
92.15
92.5
92.85

150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150

1852
1853
1854
1855
1856
1857
1858
1859
1860
1861
1862
1863
1864
1865
1866
1867
1868
1869
1870
1871
1872
1873
1874
1875
1876
1877
1878
1879
1880
1881
1882
1883
1884
1885
1886
1887
1888
1889
1890
1891
1892
1893
1894
1895
1896

93.2
93.55
93.9
94.25
94.6
94.95
95.3
95.65
96
96.35
96.7
97.05
97.4
97.75
98.1
98.45
98.8
99.15
99.5
99.85
100.2
100.55
100.9
101.25
101.6
101.95
102.3
102.65
103
103.35
103.7
104.05
104.4
104.75
105.1
105.45
105.8
106.15
106.5
106.85
107.2
107.55
107.9
108.25
108.6

150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150

1897
1898
1899
1900
1901
1902
1903
1904
1905
1906
1907
1908
1909
1910
1911
1912
1913
1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941

108.95
109.3
109.65
110
110.35
110.7
111.05
111.4
111.75
112.1
112.45
112.8
113.15
113.5
113.85
114.2
114.55
114.9
115.25
115.6
115.95
116.3
116.65
117
117.35
117.7
118.05
118.4
118.75
119.1
119.45
119.8
120.15
120.5
120.85
121.2
121.55
121.9
122.25
122.6
122.95
123.3
123.65
124
124.35

150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150

1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986

124.7
125.05
125.4
125.75
126.1
126.45
126.8
127.15
127.5
127.85
128.2
128.55
128.9
129.25
129.6
129.95
130.3
130.65
131
131.35
131.7
132.05
132.4
132.75
133.1
133.45
133.8
134.15
134.5
134.85
135.2
135.55
135.9
136.25
136.6
136.95
137.3
137.65
138
138.35
138.7
139.05
139.4
139.75
140.1

150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150

1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031

140.45
140.8
141.15
141.5
141.85
142.2
142.55
142.9
143.25
143.6
143.95
144.3
144.65
145
145.35
145.7
146.05
146.4
146.75
147.1
147.45
147.8
148.15
148.5
148.85
149.2
149.55
149.9
150.25
150.6
150.95
151.3
151.65
152
152.35
152.7
153.05
153.4
153.75
154.1
154.45
154.8
155.15
155.5
155.85

150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150

2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
2063
2064
2065
2066
2067
2068
2069
2070
2071
2072
2073
2074
2075
2076

156.2
156.55
156.9
157.25
157.6
157.95
158.3
158.65
159
159.35
159.7
160.05
160.4
160.75
161.1
161.45
161.8
162.15
162.5
162.85
163.2
163.55
163.9
164.25
164.6
164.95
165.3
165.65
166
166.35
166.7
167.05
167.4
167.75
168.1
168.45
168.8
169.15
169.5
169.85
170.2
170.55
170.9
171.25
171.6

150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150

2077
2078
2079
2080
2081
2082
2083
2084
2085
2086
2087
2088
2089
2090
2091
2092
2093
2094
2095
2096
2097
2098
2099
2100
2101
2102
2103
2104
2105
2106
2107
2108
2109
2110
2111
2112
2113
2114
2115
2116
2117
2118
2119
2120
2121

171.95
172.3
172.65
173
173.35
173.7
174.05
174.4
174.75
175.1
175.45
175.8
176.15
176.5
176.85
177.2
177.55
177.9
178.25
178.6
178.95
179.3
179.65
180
180.35
180.7
181.05
181.4
181.75
182.1
182.45
182.8
183.15
183.5
183.85
184.2
184.55
184.9
185.25
185.6
185.95
186.3
186.65
187
187.35

150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150

2122
2123
2124
2125
2126
2127
2128
2129
2130
2131
2132
2133
2134
2135
2136
2137
2138
2139
2140
2141
2142
2143
2144
2145
2146
2147
2148
2149
2150
2151
2152
2153
2154
2155
2156
2157
2158
2159
2160
2161
2162
2163
2164
2165
2166

187.7
188.05
188.4
188.75
189.1
189.45
189.8
190.15
190.5
190.85
191.2
191.55
191.9
192.25
192.6
192.95
193.3
193.65
194
194.35
194.7
195.05
195.4
195.75
196.1
196.45
196.8
197.15
197.5
197.85
198.2
198.55
198.9
199.25
199.6
199.95
200.3
200.65
201
201.35
201.7
202.05
202.4
202.75
203.1

150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150

2167
203.45
150
2168
203.8
150
2169
204.15
150
2170
204.5
150
2171
204.85
150
2172
205.2
150
2173
205.55
150
2174
205.9
150
2175
206.25
150
2176
206.6
150
2177
206.95
150
2178
207.3
150
2179
207.65
150
2180
208
150
2181
208.35
150
2182
208.7
150
2183
209.05
150
2184
209.4
150
2185
209.75
150
2186
210.1
150
2187
210.45
150
2188
210.8
150
2189
211.15
150
2190
211.5
150
2191
211.85
150
2192
212.2
150
2193
212.55
150
2194
212.9
150
2195
213.25
150
2196
213.6
150
2197
213.95
150
2198
214.3
150
Julie will be2199
indifferent about
which plan to chose
214.65
150at the level where the expenses for both plans eq
each other.2200
215
150
At 1800 minutes , the
regular plan cost a fixed150
price of $75 with $0.35 per additional minutes, while
2014.28571143
149.999999
executive plan cost $150 fixed price for 2200 with $0.30 per additional minutes. Therefore, the
regular-exe cost=
0.00
expenses for regular plan increases by $0.35 from 1800mins while the executive plan start increasi
Note:
I equate
cell by
( D434)
from
2200mins
$0.30.to 0 to automatically adjust "the mins required" in cell A433 using Excel So

That is, at 2200 minutes, the regular plan total expenses = $75 + (0.35 *(2200-1800))=$195, while
executive plan remain $150.
Therefore, at 2200 mins, the regular plan is greater than the executive plan, but at 1800 minutes, i
less than the executive plan because it is $75, while excutive is $150.

Hence, it can be deduced that the level where the total expenses will be equal to each other is betw
1800 and 2200minutes.
And, at this point, the total expenses for executive plan remain $150.
Therefore, regular plan total expenses = executive total expenses at < 2200minutes = $150.
Regular expenses = $75 + (0.35 *(X-1800) = $150
0.35 *(X-1800) = 150-75 = 75
X-1800 = 75/0.35 = 214.29

Hence, it can be deduced that the level where the total expenses will be equal to each other is betw
1800 and 2200minutes.
And, at this point, the total expenses for executive plan remain $150.
Therefore, regular plan total expenses = executive total expenses at < 2200minutes = $150.

Regular expenses = $75 + (0.35 *(X-1800) = $150

0.35 *(X-1800) = 150-75 = 75
X-1800 = 75/0.35 = 214.29
X = 214.29 + 1800 = 2014.3
Therefore, the volume level of minutes at which Julie would be indifferent between the t
plan is approximately 2014 minutes or rounded to 2015 minutes to be able to enjoy the
1minute fully.

ost of $105 on expenses

expenses of the two

enses for both plans equal

dditional minutes, while the

tes. Therefore, the
utive plan start increasing
ell A433 using Excel Solver.

200-1800))=$195, while the

but at 1800 minutes, it is

ual to each other is between

0minutes = $150.

ual to each other is between

0minutes = $150.

fferent between the two

be able to enjoy the last

QUESTION 2 A
Linear Programming model

Decision Variable
Objective Function
Constraints
Constraints
Constraints

X1
X2
Product A Product B
Max 60A + 90B
6A + 10B <= 90hrs
12A + 10B <= 125hrs
A + B <= 15

Quantity
profit
Assemble hrs available
Finishing hrs available
Units that available warehouse space can conta

rehouse space can contain

QUESTION 3

Decision Variable
Objective Function
Constraints
Constraints
Constraints
Constraints
Constraints

X1
X2
Valley Nectar
Valley Red
Maximize
12000N + 15000R
6N + 9R <= 80
5N + 5R <= 75
15N + 10R <= 120
N
<= 8
R
<= 8

Grape
Storage space
Processing time
Demand for Nectar
Demand for Red

torage space
rocessing time
emand for Nectar
emand for Red