Suppose there is a fourth drug, drug D, that Repco can produce and sell. Each unit of drug D requires 4 labor hours, 1 unit of drug A, and 1 unit of drug C to produce, and it sells for $150 per unit. Modify the current model to incorporate drug D and reoptimize.

If drug D isn’t produced in the optimal solution, use sensitivity analysis to see how much higher its selling price would have to be before Repco would produce it.

If drug D is produced in the optimal solution, use sensitivity analysis to see how much lower its selling price would have to be before Repco would stop producing it.

Skill-Extending Problem