A company produces two products, A and B, which have profits of $9 and $7, respectively. Each unit of product requires two resources are as follows:

a. Formulate a linear programming model to determine the optimal product mix that will maximize profit.

b. Solve graphically, and identify the amount of unused resources (i.e., slack) at each of the graphical extreme points.

c. What would be the effect on the optimal solution if resource 1 was reduced to 40 units?

d. What would be the effect on the optimal solution if the profit for product B was increased from $7 to $15? To $20?

Transcribed Image Text:

Resources/Unit 2 Product 1 A 12 4 B 4 8 Total Resources 60 40