Question

Meredith wants to maximize her profits from selling items for the Aggie REPS. She can earn $5 profit for selling fleeces and $7 profit for selling t-shirts. She is limited by his time; it takes 2 hours to make a sale of a fleece and 4 hours for a t-shirt, while she only has 40 hours to devote to sales. Meredith is also subject to the limits of the manufacturer. They have a limit of 42 hours to make the items with fleeces taking 6 hours and t shirts taking 3 hours. Meredith must sell at least 3 fleeces to keep her position with the Aggie REPS.

1. What is the standard format for this problem?

2. How many fleeces and t-shirts will Meredith sell? How much money will she make?

3. What is the shadow price on manufacturing? What does this value mean?
   

4. What is a one sentence interpretation of the reduced cost of fleeces?

Answer 1

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for fleeces no. for t shirts No soln formate for problem . Profit= 5 h + 7 t f t sell time aftht <40 manufacture time of + 3t = 42 $73, 20 kros hrs. To maximize Profit solving graphically, zinplace off y inplace of t 5x + 7y= c o c=71 -10 (3,8) 2x + 4y < 40 6x + 3y < 42 Solution Region x>3 y20 42 thir Maximum Prodit of 71, +=3, t=8. shadow Price of Manutachning is Price that charge ser extra 1 hr manufacking unit to operate profit by 42 hrs is 71 & then for Ihr extra charge + cost = Z1 $/hr + cost- Reduce cost of fleeces then Profil- increase. Material cost is less, with some idea operating and labur cost is less. 42