Answer:
Following are the solution to the given points:
Explanation:
Given:
[tex](D) = 10,160\ tires / year\\\\(H) = \$14 / tire\\\\(S) = \$76\\\\work\ days\ number = 287 \ \frac{days}{year}[/tex]
For point a:
[tex]EOQ = \sqrt{(\frac{2DS}{H})}[/tex]
[tex]=\sqrt{(\frac{2\times 10,160\times 14 }{14})}\\\\=\sqrt{({2\times 10,160})}\\\\=\sqrt{20320}\\\\=142.548[/tex]
For point b:
Calculating the order of number of per year [tex]= \frac{D}{EOQ}[/tex]
[tex]=\frac{10,160}{142.548}\\\\=71.27\approx 71[/tex]
therefore, the reorded store 71 times per year
For point c:
Calculating the order cycle length [tex]= (\frac{EOQ}{D}) \times \text{work days number in a year}[/tex]
[tex]= (\frac{142.548}{10,160}) \times287\\\\= 0.0140\times287\\\\=4.018[/tex]
For point d:
[tex]\text{Total annual cost = carrying cost + ordering cost}[/tex]
Carrying cost:
[tex]= (\frac{EOQ}{2}) \times H \\\\= (\frac{142.548}{2}) \times 14 \\\\= 71.274 \times 14 \\\\= \$997.836 \approx 998\\\\\[/tex]
Ordering cost:
[tex]= (\frac{D}{EOQ}) \times S \\\\ = (\frac{10160}{142.548}) \times 76 \\\\ = 71.274\times 76\\\\ = \$5416.824\\\\[/tex]
[tex]\therefore\\\\\text{Total annual cost = Carrying cost + Holding cost}[/tex]
[tex]=998+5416.824\\\\=6414.824[/tex]
Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $875. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 14,000 Units sold 12,000 Units in ending inventory 2,000 Variable costs per unit: Direct materials $ 200 Direct labor $ 420 Variable manufacturing overhead $ 64 Variable selling and administrative $ 23 Fixed costs: Fixed manufacturing overhead $ 860,000 Fixed selling and administrative $ 410,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan
Answer:
Unitary product cost= $745.43
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
Direct materials $200
Direct labor $420
Variable manufacturing overhead $ 64
Fixed manufacturing overhead $ 860,000
First, we need to calculate the unitary fixed overhead:
Unitary fixed overhead= 860,000 / 14,000= $61.43
Now, the unitary product cost:
Unitary product cost= 200 + 420 + 64 + 61.43
Unitary product cost= $745.43
SureLock Manufacturing Co. makes and sells several models of locks. The cost records for the ZForce lock show that manufacturing costs total $19.62 per lock. An analysis of this amount indicates that $11.90 of the total cost has a variable cost behavior pattern, and the remainder is an allocation of fixed manufacturing overhead. The normal selling price of this model is $29.00 per lock. A chain store has offered to buy 14,000 ZForce locks from SureLock at a price of $15.75 each to sell in a market that would not compete with SureLock’s regular business. SureLock has manufacturing capacity available and could make these locks without incurring additional fixed manufacturing overhead.
Required:
a. Calculate the effect on SureLock’s operating income of accepting the order from the chain store.
b. If SureLock’s costs had not been classified by cost behavior pattern, is it likely that a correct special order analysis would have been made? Explain your answer.
c. Identify the key qualitative factors that SureLock managers should consider with respect to this special order decision.
Answer:
a. $53900
Explanation:
a. the effect on surelocks operating income
$15.75 - $11.9
= $3.85*14000 zforce locks
= $53900
the operating income has risen by 53900 dolars
b. the correct special order analysis can only come in if the the actual cost that was made on the special order was stated. If not the decison cannot be tken rightly given that the total cost and the fixed manufacturing cost is higher than that of the special order price for selling. the special order is not going to be accepted given this reason. So a correct special order analysis would not be made.
c. the key qualitative factors are
selling cost for each lock for this special order and also the variable costs.
Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.50; direct labor, $13.50, variable overhead $2.50 and fixed overhead, $7.50. An outside supplier has offered to sell the product to Paxton for $33.00. Compute the net incremental cost or savings of buying the component.
Answer:
$7.50 per unit
Explanation:
Cost of buying from outside supplier = $33 per unit.
Relevant cost of making such component in-house = Direct materials+ Direct labor+ Variable overhead
= $9.50 per unit + $13.50 per unit + $2.50 per unit
= $25.50 per unit
Net incremental cost of buying the component = Cost of buying from outside supplier- Relevant cost of making such component in-house
= $33.00 per unit - $25.50 per unit
= $7.50 per unit
Departmental information for the four departments at Samoa Industries is provided below.
Total Cost Cost Driver Square Feet Number of
Employees
Janitorial $150,000 Square footage serviced 200 40
Cafeteria 50,000 Number of employees 20,000 12
Cutting 1,125,000 4,000 120
Assembly 1,100,000 16,000 40
The Janitorial and Cafeteria departments are support departments. Samoa uses the sequential method to allocate support department costs, first allocating the costs from the Janitorial Department to the Cafeteria, Cutting, and Assembly departments.
1. Determine the dollar amount of the Janitorial Department costs to be allocated to the:
a. Cafeteria Department
b. Cutting Department
2. Determine the dollar amount of the Cafeteria Department costs to be allocated to the:
a. Cutting Department
b. Assembly Department
Answer:
Samoa Industries
1. The dollar amount of the Janitorial Department costs to be allocated to the:
a. Cafeteria Department = $75,000
b. Cutting Department = $15,000
2. The dollar amount of the Cafeteria Department costs to be allocated to the:
a. Cutting Department = $93,750
b. Assembly Department = $31,250
Explanation:
a) Data and Calculations:
Total Cost Cost Driver Square Feet Number of
Employees
Janitorial $150,000 Square footage serviced 200 40
Cafeteria 50,000 Number of employees 20,000 12
Cutting 1,125,000 4,000 120
Assembly 1,100,000 16,000 40
Allocation of Departmental Costs:
Janitorial Cafeteria Cutting Assembly
Total Costs $150,000 $50,000 $1,125,000 $1,100,000
Janitorial dept. (150,000) 75,000 15,000 60,000
Cafeteria dept. 0 (125,000) 93,750 31,250
Total allocated costs $1,233,750 $1,191,250
A firm that purchases a commercial-off-the-shelf (COTS) information system benefits by getting a standardized system without having to absorb development costs, but risks getting a system that does not align with the firm's businesses processes and existing technologies.
a. True
b. False
Answer: True
Explanation:
Commercial-off-the-shelf (COTS) software refers to the software products which are readily made and hence are available in the market for purchase.
One benefit of this is that when it's purchased, the company gets a standardized system without having to absorb development cost. Despite this advantage, it has a disadvantage as the company can risk getting a system which doesn't align with the businesses processes and existing technologies of the company.
Lopez Company has Retained Earnings of $48,000 at the end of March, 2020. During the month of April, Lopez has revenues of $72,000 and total operating expenses of $52,000. Lopez also pays its shareholders dividends of $10,000 on April 30. What is Lopez Ending RE = Beg. RE+NI - Div = Beg. RE + (Rev - Exp) - Div = 10,000 + (70,00 0-85,000) - 5,000 = (10,000) Company's ending balance of Retained Earnings on April 30?
Answer: $58,000
Explanation:
Ending retained earnings = Beginning retained earnings + Net income - Dividends
Net income = Revenues - Operating expenses
= 72,000 - 52,000
= $20,000
Ending retained earnings = 48,000 + 20,000 - 10,000
= $58,000
A cleaning product company is having trouble with the pH control of one of their products. The product should be slightly basic but the pH is too high. What could the company try to correct the pH of the product
Answer:
sodium hydroxide to raise and acidic solutions to drop ph
Explanation:
how to lower and make highee
Which of the following has the greatest impact on how long an employee stays with an organization and how productive the employee is while there?
a. The employee's coworkers
b. The employee's relationship with their immediate manager
c. How much the employee is paid
d. Promotion opportunities
Answer: The employee's relationship with their immediate manager.
Explanation:
Despite the fact that the options given have an effect on how long an employee will stay in an organization, the greatest impact will be the employee's relationship with their immediate manager.
When a worker has a bad relationship with their immediate manager, this beings about disruption in communication and there won't be a cordial relationship with the manager. This affects the worker and can lead to the worker finding another job.
The current ratio of a firm with current assets of $300,000, current liabilities of $100,000, and inventory of $100,000 is:
Answer: 3.0
Explanation:
The current ratio of a firm allows us to tell whether the company is able to pay off its current obligations using its current assets.
Current ratio is calculated by:
= Current assets / Current liabilities
= 300,000 / 100,000
= 3.0
Inventory is already included in current assets so there is no need to add it again.
John is a self-employed computer consultant who lives and works in Dallas. John paid for the following activities in conjunction with his business. Which is not deductible in any amount?
1. Dinner with a potential client where the client's business was discussed.
2. A trip to Houston to negotiate a contract.
3. A seminar in Houston on new developments in the software industry.
4. A trip to New York to visit a school chum who is also interested in computers.
A. 4 only
B. 3 only
C. 2 only
D.None of these
E. 1 only
Pet Place Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows:May$134,000June155,000July169,000All sales are on account. Sixty-five percent of sales are expected to be collected in the month of the sale, 30% in the month following the sale, and the remainder in the second month fol-lowing the sale.Prepare a schedule indicating cash collections from sales for May, June, and July
Answer:
Pet Place Supplies Inc.
Schedule of Cash from Sales for May, June, and July:
May June July
Cash collections:
60% month of sale $80,400 $93,000 $101,400
30% ffg month of sale 40,200 46,500
10% second month 13,400
Total cash collections $80,400 $133,200 $161,300
Explanation:
a) Data and Calculations:
May June July
Projected credit sales $134,000 $155,000 $169,000
Cash collections:
60% month of sale $80,400 $93,000 $101,400
30% ffg month of sale 40,200 46,500
10% second month 13,400
Total cash collections $80,400 $133,200 $161,300
When Chernobyl melted down in the Soviet Union, the: a. price of U.S. basketballs increased. b. prices of assets reacted slowly to the information. c. price of U.S. potatoes increased. d. stock prices of U.S. nuclear plants increased.
Answer: d. stock prices of U.S. nuclear plants increased.
Explanation:
Chernobyl was a nuclear power plant in the former Soviet Union that was being used to produce electricity until it suffered a meltdown that effectively rendered the surrounding areas unlivable.
In response to this disaster, the stock prices of U.S. nuclear power plants went up because the Soviet meltdown not only reduced the supply of nuclear powered electricity but also showed that American engineering was superior and so people bought more American nuclear plant shares which took its price up.
Marigold Corp. reported a net loss of $12300 for the year ended December 31, 2017. During the year, accounts receivable decreased $6150, inventory increased $9840, accounts payable increased by $12300, and depreciation expense of $7380 was recorded. During 2017, operating activities ________.
Answer:
See below
Explanation:
Computation of operating activities
Net loss
($12,300)
Add:
Depreciation expense
$7,380
Accounts payable increase
$12,300
Accounts receivable decreased
$6,150
Less:
Inventory increased
($9,840)
Operating activities
$3,690
Therefore, during 2017 operating activities used net cash of $3,690
A local restaurant has promised to provide a combination of hamburger meal and hot dog meal at a local fundraiser. They have promised no fewer than a total of 100 meals. Their capacity is a maximum of 200 meals. The restaurant management has decided that number of hamburger meals cannot be less than the number of hotdog meals. The cost of a hamburger meal is $3 whereas the cost of a hotdog meal is $2. The restaurant wants to minimize their cost. How many hamburger and hotdog meals should they produce
Answer:
Minimize Z = 3x + 2y
Explanation:
Let x represent hamburger meal and let y represent hot dog meal. The objective is to minimize the total cost. The objective function will be
Z = 3x + 2y
The maximum capacity of restaurant is 200 meals while it has minimum cap for 100 meals.
Andy Manufacturing produces a single product that sells for $80. Variable costs per unit equal $40. The company expects total fixed costs to be $82,000 for the next month at the projected sales level of 2,700 units. Attempting to improve performance, management is considering several alternative actions. Each situation is to be evaluated separately. Suppose that management believes that an 11% reduction in the selling price will result in an 11% increase in unit sales. If this proposed reduction in selling price is implemented: (Do not round intermediary calculations, and round the final answer to the nearest whole number.)
Answer:
The correct option is A) operating income will decrease by $14,494.
Explanation:
Note: This question is not complete as the options are omitted. The options are therefore provided to complete the question before answering the question as follows:
A) operating income will decrease by $14,494
B) operating income will increase by $9,266
C) operating income will decrease by $23,760
D) operating income will increase by $14,494
The explanation of the answer is now provided as follows:
Note: See the attached excel file for the Determination of Operating Income BEFORE and AFTER the 11% reduction in the selling price using Contribution Format Income Statement.
From the attached excel file, we have:
Operating Income BEFORE 11% reduction in selling price = $26,00
Operating Income AFTER 11% reduction in selling price = $11,506
Decrease in operating income = Operating Income BEFORE 11% reduction in selling price - Operating Income AFTER 11% reduction in selling price = $26,00 - $11,506 = $14,494
Therefore, the correct option is A) operating income will decrease by $14,494.
HealthSouth manipulated their financial statements by making ______________ in false or unsupported entries in the company's accounting systems.
Answer: 2.7 billion
Explanation:
n January 1, 2018, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The only interest-bearing debt the company had outstanding during 2018 was long-term bonds with a book value of $11,600,000 and an effective interest rate of 11%. Construction expenditures incurred during 2018 were as follows: January 1 $ 660,000 March 1 696,000 July 31 576,000 September 30 760,000 December 31 460,000 Required: Calculate the amount of interest capitalized for 2018.
Answer:
$183,700
Explanation:
Calculation to determine the amount of interest capitalized for 2018.
First step is to calculate the Accumlated expenditure
Date Expenditure * Weight = Average
January 1 660000 * 12/12 =660,000
March 1 696000 * 10/12 = 580,000
July 31 576000 * 5/12 = 240,000
September 30 760000 * 3/12 =190,000
December 31 460000 * 0/12 = 0
Accumulated expenditure=660,000+580,000+240,000+190,000
Accumulated expenditure=$1,670,000
Now let determine the amount of interest capitalized for 2018
Interest capitalized for 2018=$1,670,000 * 11%
Interest capitalized for 2018=$183,700
Therefore the amount of interest capitalized for 2018 is $183,700
Assume you deposit $5,000 at the end of each year into an account paying 9.5 percent interest. a. How much money will you have in the account in 19 years
Answer: $242,567.27
Explanation:
The $5,000 is an annuity as it is being paid every year and is a constant amount.
The value in 19 years is the future value of this annuity:
Future value of annuity = Annuity * ( ( 1 + rate) ^ number of years - 1) / rate
= 5,000 * ( ( 1 + 9.5%)¹⁹ - 1) / 9.5%
= $242,567.27
Your boss believes the company's power plant is producing too much air pollution on a typical island. Your boss gives you three choices for dealing with this problem because he/she does not want to deal with it: You can pay a pollution tax (Carbon Offsets) one time of $13,000,000 immediately. You can close the plant and install a power cable from the mainland to the Island. That will cost you $1,000,000 at the end of this year, $3,000,000 at the end of next year and then $750,000 forever for maintenance. You can retrofit the plant with scrubbers to reduce the emissions to make the plant green. That will cost $7.5m at the end of this year and $100,000 for 50-years for maintenance. Assume that the cost of generating power on the mainland is approximately the same as the cost of generating power at the Island's plant. Assume, this comes as a surprise to you and you, have not saved any money in reserves, and you need to raise capital. Additional information is that market has a 12 percent market risk premium on the power plant with the risk-free rate being 5 percent with a company tax rate of 35 percent.
Current total raised capital at the power plant: (This will help you calculate the WACC) Debt – 7,000 outstanding bonds, at 7.5% coupon and 20 years to maturity. These bonds pay interest semiannually and quoted a price of 108 percent of par. Common Stock -180,000 shares outstanding, selling for $50 per share: Beta .90. Preferred Stock – 8,000 shares of 5.5 percent preferred stock outstanding, currently selling for $95.00 per share. Please answer in essay format and provide your Excel document showing all your calculation in appendixes choose the best option for Island. Support your answer with your calculations. Also, to calculations use specified resources, other appropriate scholarly resources, including older articles.
Answer:
WACC is 10.38%.
Best option is no 3, paying $750,000 this year and then $100,000 for 5 years.
Explanation:
WACC = Common stock * cost of equity + Debt * Cost of debt + Preferred stock * rate of return.
Common stock = 180,000 shares * $50 = $9,000,000
Preferred stock = 8,000 shares * $95 per share = $760,000
Debt = 7,000 bonds * 108% = $7,560,000
Cost of equity : 12% * 0.9 + 5% = 12.5%
Cost of debt : 7.5% * 0.65 = 4.40%
Preferred stock return rate : 5.5% / 95 = 5.79%
WACC = 10.38%
PV for option 1: $13,000,000
PV for option 2: $9,298,647
PV for option 3: $7,661,247
onsider the market for purple potatoes below and assume that a price ceiling of $30 is imposed by the government. Calculate the deadweight loss:
Answer:
Deadweight loss is $5000
Explanation:
Calculation to determine what deadweight loss is
First step is to calculate the Change in quantity
Change in quantity =2500-2000
Change in quantity=500 unit
Now let determine the Deadweight loss
Using this formula
Deadweight loss =0.5* Change in quantity *(Willingness to pay at the price ceiling -Price ceiling)
Let plug in the formula
Deadweight loss =0.5*500*(50-30)
Deadweight loss=250*20
Deadweight loss =5000
Therefore the deadweight loss is $5000
Jillian Diaz receives a regular salary of $1,500 a month and is entitled to overtime pay at the rate of one and one-half times the regular hourly rate for any time worked in excess of 40 hours per week. Diaz's overtime pay rate is a.$6.92. b.$1,800. c.$12.98. d.$276.92.
Answer: $14.07
Explanation:
The regular salary of $1,500 is based on a 40-hour week.
The rate per hour assuming 4 weeks is:
= 1,500 / (40 * 4)
= $9.38
Overtime rates are one and one-half times the regular hourly rate:
= 9.38 * 1¹/₂
= $14.07
Comparing each item on a financial statement with a total amount from the same statement is referred to as
Answer: vertical analysis
Explanation:
Vertical analysis is when each item on a financial statement is compared with a total amount from the same statement.
Vertical analysis refers to a financial statement analysis method whereby each line item in a statement is listed as a percentage of the base figure. In such case, each amount in the income statement will then be restated as a percentage of sales.
Russell Retail Group begins the year with inventory of $62,000 and ends the year with inventory of $52,000. During the year, the company has four purchases for the following amounts.
Purchase on February 17 $217,000
Purchase on May 6 137,000
Purchase on September 8 167,000
Purchase on December 4 417,000
Required:
Calculate cost of goods sold for the year.
Answer:
Cost of goods sold = 948000
Explanation:
Inventory at the beginning of the year = $62000
Inventory at the end of the year = $52000
Cost of goods sold = Beginning inventory + purchases during the year - ending inventory
Cost of goods sold = $62000 + 217000 + 137000 + 167000 + 417000 - $52000
Cost of goods sold = 948000
If the price per unit were doubled at the same time that the variable cost per unit was doubled, the break-even point would be:
Answer:
halved
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
Assume fixed cost is initially 1000 units, price is 10, variable cost is 5
breakeven quantity = 1000 / (10 - 5) = 200
assume price per unit were doubled at the same time that the variable cost per unit was doubled
1000 / ( 20 - 10) = 100
breakeven point is halved
For tax reasons, your client wishes to purchase an annuity that pays $100,000 each year for 6 years, with the first payment in one year. At an interest rate of 7% and focusing on time value of money without consideration of any fees, how much would the client need to invest now
Answer:
the amount that should be invested now is $476,654
Explanation:
The computation of the amount that should be invested now is shown below:
= Payment made each year × (1 - (1 + rate of interest)^-number of years) ÷ rate of interest
= $100,000 × [1 - (1 + 7%)^-6] ÷ 7%
= $476,654
hence, the amount that should be invested now is $476,654
A ________ has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group.
Answer:
Customs union.
Explanation:
Economic integration can be defined as a strategic trade arrangement between countries to eliminate or mitigate trade barriers, as well as coordinate fiscal and monetary policy among its members.
Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time. There are different types of market or trade bloc used in economic integration and these includes;
I. Political union.
II. Free trade area.
III. Common market.
IV. Economic union.
VI. Customs union.
A customs union can be defined as an agreement between a group of states (two or more neighboring countries) to minimize or eliminate customs duty, remove trade barriers and adopt a common external tariff on imported goods outside the union.
Hence, a customs union is established to reduce or eliminate internal tariffs while adding a common external tariff on products imported from countries outside the group in order to allow free trade among themselves.
Answer:
Customs union.
Explanation:
A Customs union has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group.
Bothell Company uses a job order costing system that allocates estimated overhead as 40% of prime costs. What is the cost of a job that required direct materials of $2,000 and direct labor of $5,200
Answer:
$10,080
Explanation:
The computation of the cost of the job is shown below:
We know that
prime cost = direct material + Direct labor
= $2,000 + $5,200
= $,7200
Now overhead is
= 40% of $7200
= $2,880
And,
Cost of job = direct material + Direct labor + overhead
= $2,000 + $5,200 + $2,880
= $10,080
The spot price of an investment asset that provides no income is $32.10 and the risk-free rate for all maturities (with continuous compounding) is 6.25%. What is the 4-year forward price? Answer with two decimal digits accuracy. Example: 52.12
Answer:
$41.22
Explanation:
Forward price = Spot price*(1 + Risk free rate)^Time of contractContinuous compounding rate = e^(0.0625) = 1.06449445892 = 1.0645
Forward price = $32.10 * (1.0645)^4
Forward price = $32.10 * 1.28405215218
Forward price = $41.2180741
Forward price = $41.22
So, the 4-year forward price is $41.22.
On the basis of this information, what were total maintenance costs when the company experienced 23,000 machine hours of activity, total maintenance costs averaged $34.30 per hour. When activity jumped to 27,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $27.30.
a. On the basis of this information, the variable cost per machine hour was:___________
b. On the basis of this information, the fixed cost was:___________-
c. On the basis of this information, what were total maintenance costs when the company experienced 25,000 machine hours?
Answer:
Results are below.
Explanation:
First, we need to calculate the total cost for each activity level:
High activity level= 27,000*27.3= $737,100
Low activity level= 23,000*34.3= $788,900
Now, using the high-low method, we can determine the variable and fixed costs:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (788,900 - 737,100) / (27,000 - 23,000)
Variable cost per unit= $12.95 per machine-hour
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 788,900 - (12.95*27,000)
Fixed costs= $439,250
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 737,100 - (12.95*23,000)
Fixed costs= $439,250
Finally, for 25,000 hours:
Total cost= 439,250 + 12.95*2,5000
Total cost= $763,000
It's time to buy pet food again and Lisa heads to the grocery store with $40 in her purse, leaving her four hungry dogs and seven hungry cats at home. Dog food costs $1 per can and cat food costs $0.50 per can. Lisa wants to minimize her pet food cost. What is an appropriate objective function for this scenario?
Answer: Min Z = X1 + 0.50X2
Explanation:
Based on the information given in the question, the appropriate objective function for this scenario will be explained this:
Let X1 be the number of dog food cans which will be bought
Let X2 be the number of cat food cans which will be bought
Then, the objective function will be:
Min Z = 1X1 + 0.50X2
The appropriate objective function for this scenario is Min Z = X1 + 0.50X2
Objective function:Since in her purse there is $40 also there is four hungry dogs and seven hungry cats at home. Dog food costs $1 per can and cat food costs $0.50 per can.
So based on this, here we assume that X1 be the no of dog And, X2 should be no of cat
So, the objective function is Min Z = X1 + 0.50X2
Learn more about function here: https://brainly.com/question/22958464