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Explain the value of the reduced cost ( 0 . 3 ) for the number of plugs to produce. b . If the gross margin

Explain the value of the reduced cost (0.3) for the number of plugs to produce.
b. If the gross margin for rails is decreased to $1.05, can you predict what the optimal
solution and profit will be?
c. Suppose that the gross margin for rivets is increased to $0.85. Can you predict what the
optimal solution and profit will be?
d. If the gross margin for clips is reduced to $1.10, can you predict what the optimal
solution and profit will be? What if the gross margin is reduced to $1.00?
e. Suppose that an additional 500 minutes of machine capacity is available. How will the
optimal solution and profit change? What if planned maintenance reduces capacity by
300 minutes?

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