Question
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
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 70 units. One unit of A uses 2 units of Ml and 2 units of M2, and 1 unit of Buses 3 units of Ml and 6 units of M2. (a) Determine the dual prices of Ml and M2 and their feasibility ranges. (b) Suppose that 4 additional units of Ml can be acquired at the cost of $0.30 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 associated optimum revenue.
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