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B D E G H M 3 4 6 A craftsman builds two kinds of birdhouses, one for wrens (X1), and one for bluebirds (X2).

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B D E G H M 3 4 6 A craftsman builds two kinds of birdhouses, one for wrens (X1), and one for bluebirds (X2). Each wren birdhouse takes four hours of labor and four units of lumber. Each bluebird house requires two hours of labor and twelve units of lumber. The craftsman has available 60 hours of labor and 120 units of lumber. Wren houses profit $6 each and bluebird houses profit $15 each. a) State the objective function and constraints b) Using excel solver, calculate the quantity for XI and X2 that would yield the highest profit. c) Sensitivity Analysis/ Shadow price: If you were to increase available labor hour by 1 hour, how much would be the increase in profit per labor hour of increase? If you were to increase availability of lumber by 1 unit, how much is the increase per unit? 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

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