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A garden store prepares various grades of pine bark for mulch: nuggets (x1), mini-nuggets (x2), and chips (x3). The process requires pine bark, machine time,
A garden store prepares various grades of pine bark for mulch: nuggets (x1), mini-nuggets (x2), and chips (x3). The process requires pine bark, machine time, labor time, and storage space. The following model has been developed. a-1. What is the shadow price of a pound of pine bark? (Round your answer to 2 decimal places.) a2. Over what range is this shadow price value appropriate? b. What is the maximum price the store would be justified in paying for additional pine bark (if they are okay with just breaking even)? (Round your answer to 2 decimal places.) c-1. What is the shadow price of labor? (Leave no cells blank - be certain to enter "0" wherever required.) c-2. Over what range is this shadow price valid? d. If the manager could ask the workers to work overtime, thereby adding 60 minutes of labor, should she? Yes No e. If the manager can obtain either additional pine bark or additional storage space, which one should she choose and how much (assuming additional quantities cost the same as usual)? f-1. If a change in the chip operation increased the profit on chips from $6 per bag to $7 per bag, would the optimal quantities change Yes No f2. What is the new value of the objective function, if the profit on chips increases from $6 per bag to $7 per bag? g1. If profits on chips increased to $7 per bag and profits on nuggets decreased by $.60, would the optimal quantities change? Yes No g-2. Given this increase in profit on chips to $7 per bag, and a decrease in profit on nuggets of $0.60, what is the new value of the objective function? (Round intermediate calculations to 3 decimal places and final answer to nearest whole number.)
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