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Quality Air Conditioning manufactures three home air conditioners: an economy model, a standard model, and a deluxe model. The profits per unit are $63, $95,

Quality Air Conditioning manufactures three home air conditioners: an economy model, a standard model, and a deluxe model. The profits per unit are $63, $95, and $135, respectively. The production requirements per unit are as follows:

Number of fans

Number of cooling Coils

Manufacturing

Time (hours)

Economy

1

1

8

Standard

1/2

2

12

Deluxe

1

4

14

For the coming production period, the company has 200 fan motors, 300 cooling coils, and 2200 hours of manufacturing time available. How many economy models, standard models, and deluxe models should the company produce in order to maximize profit? Formulate the problem and answer the following questions.

Show LP model.

What is the optimal solution, and what is the value of the objective function?

What are the reduced costs? Interpret.

If the profit for the deluxe model were increased to $150 per unit, would the optimal solution change? Explain.

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