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B. Interpreting Linear Programming Output You have a number of crop and livestock enterprises that you could produce on your farm operation. These include the

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B. Interpreting Linear Programming Output You have a number of crop and livestock enterprises that you could produce on your farm operation. These include the following. Crops - corn, grain sorghum, wheat, alfalfa hay, and sunflowers Livestock - Beef cow/calf, ewe flock, dairy herd, and stocker steers You have the following resources available to you on your farm. - Land 2,400 acres that could be used for any enterprise 800 acres that can only be used for pasture - Buildings \& Machinery Adequate for any plan that you might develop - Labor 8,100 hours available - Feed All corn and hay that is fed to livestock must be produced on the farm You have developed an enterprise budget for each potential enterprise and you want to use that to construct a whole farm budget. The enterprise budgets show the following gross margins for each unit of each enterprise. (Units are in acres for each crop enterprise and head of animals for livestock.) In that process of developing a whole farm budget, you have to select the enterprises that you will produce. Fortunately for you, you learned how to develop a linear programming (LP) model to help with this decision. That model is being used to maximize your farm's Gross Margin. Your model shows the followine results. 1. Armed with your results, calculate the total gross margin for each of the 9 possible enterprises in the optimal solution. (Show your calculation for each enterprise.) What is the total gross margin for the farm, then? 2. By how much would gross margin change if you had one extra hour of labor to contribute to the farm business? 3. By how much would gross margin change if you forced an acre of sorghum into your optimal plan

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