Linear programming. BZ Wood Inc. manufactures wood boards and wood chips. The following three resources are used in the production process: Use per Square Metre of Resource Availability per Day Wood Boards Use per Ton of Wood Chips Electricity 60 kilowatt-hours 0.05 kilowatt-hour kilowatt-hours Labour 40 hours 0.03 hour 2 hours Warehouse space 23 cubic metres cubic metre 1 cubic metre The contribution margins are $0.35 per square metre of wood board and $20.00 for a ton of wood chips. Fixed costs are $55 per day. With the available information, the following linear program was formulated to determine the quantity of each product that should be produced in order to maximize the profit margin of the company Maximize contribution margin in $/day: CM (X1, X2) = $0.35X1 + $20X2 Subject to: 0.05X1 + 3X2 =0 square metres/day X2 >=0 ton day Where: X1: Square metres of wood boards produced per day X2: Tons of wood chips produced per day REQUIRED 1. Formulate and solve the linear programming problem to determine the production mix that will maximize the total contribution margin each day for BZ Wood Inc. Determine the daily expected operating income of the company. 3. Would the optimal solution be the same if it took 2.5 hours of labour instead of 2 hours to produce one ton of wood chips? 4. By how much would the contribution margin change if the constraint on electricity were set to 57 kilowatt-hours? Re-run your Solver worksheet. 5. Explain why the warehouse constraint is binding whereas the labour constraint is not binding