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Carla Wants to Purchase Insurance for Her Landscaping Business

Question 21

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Carla wants to purchase insurance for her landscaping business. She determines that she needs at least $137,500 of property coverage and at least $137,800 of liability coverage. In order to gain this amount of coverage, she can purchase any combination of insurance plans A and B from two different insurance companies. For each dollar she spends on Plan A, she gets $250 of property coverage and $280 of liability coverage. Plan B provides $290 of property coverage and $260 of liability coverage for each dollar of premium paid. How much should she spend on each plan to minimize her insurance cost?

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$260 for P...

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