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1 8 . The following is a linear programming model for analyzing the product mix of Maxine's Hat Company, which produces three hat styles: Maximize:

18. The following is a linear programming model for analyzing the product mix of Maxine's Hat Company, which produces three hat styles:
Maximize: $ 7 x_1+$ 8 x_2+$ 6 x_3=Z
Subject to: 2 x_1+4 x_2+2 x_3<=120(machine A time)
5 x_1+3 x_2+2 x_3<=400(machine B time)
2 x_1+2 x_2+4 x_3<=110(machine C time)
x_1>=0, x_2>=0, and x_3>=0
The POM for Windows printout in Figure D.15! shows the optimal solution to the problem. Figure D.15 Solution Screens for Maxine's Hat Company Consider each of the following statements independently, and state whether it is true or false. Explain each answer. a. If the price of hat 3 were increased to $ 11.50, it would be part of the optimal product mix. Hint: Hat 3 is represented by x_3 and its optimal value currently is 0, which means that it is not to be produced (and not part of the optimal product mix). b. The capacity of machine B can be reduced to 280 hours without affecting profits. c. If machine C had a capacity of 115 hours, the production output would remain unchanged.

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