solution

1. Given the system of equations below, solve using the Gauss – Jordan method of row reduction

2?? + ?? + 3?? = 4

?? – ?? = 4

4?? – 2?? + ?? = 1

1. A businessman is considering producing a novelty item that will be sold in hotel gift shops for $350 each. The variable cost of production for the item is $200 per unit with fixed costs of $375 000. His research has indicated that the demand for this item will be either 2 000, 3 000, 4 000 or 5 000 units.

i. Set up a payoff table for the businessman’s decision ii. Determine the number of units that he should produce using:

1. the maximax criterion
2. the maximin criterion