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a) The company is considering raising the marginal profit of a yard of standard shirt to $1 9/yard. If this change is finally implemented, how

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a) The company is considering raising the marginal profit of a yard of standard shirt to $1 9/yard. If this change is finally implemented, how will the optimal profit change? (Note: the answer to this question must be made based on the information provided in the table above. You are free to re-run the model if you want, but your answer should be justified just in view of the information given above) b) If the company could invest in some new machinery to provide extra time availability at a cost of $0.25 per additional hour, would you recommend this investment? How much more would you be willing to pay for this order? (Note: the answer to this question must be made based on the information provided in the table above. You are free to re-run the model if you want, but your answer should be justified just in view of the information given above). c) If the maximum demand for deluxe shirts was 375 yards, how would this affect the optimal value of the objective function? (Note: the answer to this question must be made on the basis of the information provided in the table above. You are free to re-run the model if you want, but your answer should be justified just in view of the information given above). A textile company produces two different types of shirts made of cotton. Standard shirts require 3 pounds of cotton per yard, whereas deluxe shirts require 6 pounds of cotton per yard. A yard of deluxe shirt requires 21 hours of processing time, and a yard of standard shirt needs just 1.9 hours. We consider that the demand for standard shirts is unlimited (i.e., we will sell all we can produce), however, the demand for deluxe shirts is limited to 400 yards per month. 2 The company currently has 4,300 pounds of cotton and 2,100 hours of processing time available to be used in the upcoming month. Their marginal profits per product are $1.80 per yard of standard shirt and $2.75 per yard of deluxe shirt. This textile company aims at selecting a production level that maximizes profits and, to that end, they use the following LP model, which they solve in Excel: *1 = no. of yards of standard shirt x2 = no. of yards of deluxe shirt maximize Z = $1.80x1 +2.75x2 subject to 3.0x1 + 6x2 54,300 2.1x1 + 1.9x2

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