A furniture company manufactures desks and chairs. Each desk uses 4 units of wood, and each chair uses 3 units of wood. A desk contributes $400 to profit, and a chair contributes $250. Marketing restrictions require that the number of chairs produced be at least twice the number of desks produced. There are 2500 units of wood available.

The file below contains the sensitivity report. Suppose the company can acquire an additional 50 units of wood for $4,000.

Question: Based on the sensitivity report, should the company buy the 50 units of wood to increase profits?

a. Yes, the company should acquire the additional 50 units of wood. Based on the shadow price for wood, profits will increase more than $4,000 if 50 additional units of wood are available.

b.No, the company should not acquire the additional 50 units of wood. The shadow price of wood is 90, and therefore profits will not increase enough if more wood is available.

c.No, the company should not acquire the additional 50 units of wood since both reduced costs are equal to 0.

d.Yes, the company should acquire the additional 50 units of wood since the allowable decrease for chairs is equal to 450.