document.write( "Question 1162002: An accounting firm has 800 hours of staff time and 96 hours of reviewing time available each week. The firm charges 1000 dollars for an audit and 300 dollars for a tax return. Each audit requires 100 hours of staff time and 8 hours of review time. Each tax return requires 12.5 hours of staff time and 2 hours of review time.
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document.write( "a) What numbers of audits and tax returns will yield the maximum revenue?
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document.write( "b) What is the maximum revenue? \n" );
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Algebra.Com's Answer #785685 by Theo(13342)![]() ![]() You can put this solution on YOUR website! make a table as shown below. \n" ); document.write( "this table makes it easier to see how the variables are applied to the problem. \n" ); document.write( "x = the number of audits. \n" ); document.write( "y = the number of returns. \n" ); document.write( " \r\n" ); document.write( " x y\r\n" ); document.write( " audits returns\r\n" ); document.write( "staff hours 100 12.5 <= 800\r\n" ); document.write( "review hours 8 2 <= 96\r\n" ); document.write( "revenue dollars 1000 300 maximize\r\n" ); document.write( "\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "your constraint inequalities are:\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "100x + 12.5 <= 800 for staff hours \n" ); document.write( "8x + 2y <= 96 for review hours\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "your objective function is:\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "1000x + 300y for revenue dollars that you want to maximize\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "using the desmos.com calculator, you graph the opposite of the constraint inequalities.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "you will graph:\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "100x + 12.5 <= 800 for staff hours \n" ); document.write( "8x + 2y <= 96 for review hours\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "also graph:\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "x <= 0 \n" ); document.write( "y <= 0\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "this is because x and y must be greater than or equal to 0 in this problem.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "the area on the graph that is NOT shaded is the region of feasibility. \n" ); document.write( "your maximum revenue will be at the corner points of this region. \n" ); document.write( "you evaluate your objective function at those corner points.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "here's what the graph looks like.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( " ![]() \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "you will find that your maximum revenue is at the point (0,48). \n" ); document.write( "the revenue is 0x + 300y = 0 + 14,400 = 14,400. \n" ); document.write( "that means max revenue when you provide zero audits and 48 tax returns for revenue of 14,400 dollars.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "your constraint inequalities need to be satisfied.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "at (0,48), 100x + 12.5y = 600 <= 800, and 8x + 2y = 96 <= 96.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "the constraints are all satisfied. \n" ); document.write( "your maximum revenue is 14,400.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "you can evaluate the other corner points on your own to confirm that (0,48) give you the maximum revenue. \n" ); document.write( "the constraints should also be saisfied at those other corner points as well.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( " \n" ); document.write( " |