an LP formulation This is a further eontinuation of problem 3 above. Now formulate an LP, using decision variables of A (units of produet A), B (units of product B that are not processed further), BB (units of product B that are processed further), e (units of product e), and X ("units" of joint produetion). The objeetive funetion should be 200A + 300B + (375-50)BB + lOe - 6OOX. The constraints should be as follows:

A ~ X; B + BB ~ 1.5X; e ~ .8X; and X ~ 500. Solve the LP, and notice the originaI production plan has materialized.

Using the shadow prices in your LP, ealeulate the incremental profit of processing one additional unit of joint produetion (Le., increasing X from 500 to 501 units). earefully explain the relationship between this ealeulation and the one you performed in problem 6 above.

AppendixLO1