4 Fruit Computer Company produces Pear and Apricot computers. If the company charges a price p1 for Pear computers and p2 for Apricot computers, it can sell q1 Pear and q2 Apricot computers, where q1  4,000  10p1 p2, and q2  2,000  9p2 0.8p1. Manufacturing a Pear computer requires 2 hours of labor and 3 computer chips.

An Apricot computer uses 3 hours of labor and 1 computer chip. Currently, 5,000 hours of labor and 4,500 chips are available. Formulate a QPP to maximize Fruit’s revenue.

Use the K–T conditions (or LINGO) to find Fruit’s optimal pricing policy. What is the most that Fruit should pay for another hour of labor? What is the most that Fruit should pay for another computer chip?