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A company produces two products, A and B . The sales volume for A has to be at least 8 0 % of the total

A company produces two products, A and B. The sales volume for A has to be at least 80%
of the total sales of both A and B. However, the company cannot sell more than 100 units of
A per day. Both products use one raw material, of which the maximum daily availability is
240lb. The usage rates of the raw material are 2lb per unit of A and 4lb per unit of B. The
profit units for A and B are $20 and $50, respectively.
a. Formulate an LP to maximize profit.
b. Graphically solve the LP, clearly present the optimal solution and optimal value
c. Determine the range of profit earned by selling one A that keeps the current solution
optimal. (Use graphical solution)
d. Determine the shadow price of the raw material using graphical solution.
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