2) (5 points) A company produces products at two factories and then ships them to three different warehouses; they would like to meet demand at each warehouse at minimum total cost, factoring in both production and shipping costs. Production costs at Factory 1 are less expensive at $12 per product; it costs $15 per product at Factory 2. The shipping costs from each factory to each warehouse are listed below, as well as the production capacity at each factory and the demand at each warehouse. For example, it costs $7 to ship one product from Factory 1 to Warehouse A. How much should they produce and ship from each factory to each warehouse and what is the minimum total cost? [Hint: Six variables you might want to call A1, B1, C1, A2, B2 and C2]

	Ware A	Ware B	Ware C	Cap
Fact 1	$7	$5	$2	900
Fact 2	$3	$1	$5	1000
Dem	600	800	300

a) Set up the LP Model for this problem and write it down here.

b) Solve it using Excel Solver and write the answers down here.

c) Simply explain what the final answers mean.

d) How much do they spend on shipping?