Question

Accounting

A competitor has used a linear programming model and formulated the following objective function:

C = 4X + 2Y

 

The optimal solution has determined that 400 X and 600 Y should be produced. An extra litre of material would however change this to 400.5 X and 599.5 Y. Materials cost £9 per litre.


To the nearest £ calculate the shadow price per litre for materials in £.

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