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A company produces two products, A and B . The unit revenues are $ 2 and $ 3 , respectively. Two raw materials, M 1

A company produces two products, A and B. The unit revenues are $2 and $3, respectively. Two raw materials, M1 and M2, used in the manufacture of the two products have respective daily availabilities of 8 and 18 units. One unit of A uses 2 units of M1 and 2 units of M2, and 1 unit of B uses 3 units of M1 and 6 units of M2. Let x1 be the number of product A produced daily, and x2 be the number of product B produced daily. Then, the LP model for this problem can be given as follows:
maxz=2x1+3x2
s.t.2x1+3x28
2x1+6x218
x1,x20
(a) Determine the dual prices of M1 and M2 and their feasibility ranges.
(b) Suppose that 4 additional units of M1 can be acquired at the cost of 30 cents per unit. Would you recommend the additional purchase?
(c) What is the most the company should pay per unit of M2?
(d) If M2 availability is increased by 5 units, determine the assocaited optimum revenue.
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