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Problem 3: 25 pts, Zippy motorcycle manufacturing produces two popular pocket bikes (miniature motorcycles with 49cc engines): the Razor and the Zoomer, In the coming
Problem 3: 25 pts, Zippy motorcycle manufacturing produces two popular pocket bikes (miniature motorcycles with 49cc engines): the Razor and the Zoomer, In the coming weck the manufacturer wants to produce up to 700 bikes and wants to ensure the number of Razors produced does not exceed the number of Zoomer by more than 300. Each Razor produced and sold results in a profit of $70 while each Zoomer results in a profit of $40. The bikes are identical mechanically and only differ in the appearance of the polymerbased trim around the fuel tank and seat. Each Razor's trim requires 2 pounds of polymer and 3 hours of production time while each Zoomer requires I pound of polymer and 4 hours of production time. Assume that 900 pounds of polymer and 2,400 labor hours are available for production of these items in the coming week. The spreadsheet solution and sensitivity report are attached. a. If the profit on Razors decreased to $35 would the optimal solution change? b. If the profit on Zoomers decreased to $35 would the optimal solution change? c. Interpret the shadow price for the supply of polymer. d. Why is the shadow price $0 for the constraint limiting the production of pocket bikes to no more than 700 units? e. Suppose the company could obtain 300 additional labor hours in production? What would the new optimal level of profit be
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