Question
possibly I am man aging a store. there is a kind of ca ke (A) that requires 200g of flo ur, 25g of fat, and
possibly I am man aging a store. there is a kind of ca ke (A) that requires 200g of flo ur, 25g of fat, and 4 e ggs, and another type of ca ke (B) that requires 100g of flo ur, 50g of fat, and 5 eggs.Today, I have 5kg of flo ur, 1kg of fat, and 150 e ggs in the store. Assume that there is no shortage of the other ingredients used in making the cakes. The profits of cakes A and B are $8 per unit and $12 per unit, respectively. Suppose I want to make at least 30 cakes today regardless of the type. postulating that every cakes made today can be sold, how many cakes A and B should be made to maximize your total daily profit?
-Formulate the problem into a linear program, and find the optimal solution using Excel solver.
-Find the shadow prices for flour, fat, and egg using the Excel solver and briefly interpret their economic implications.
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