QUESTION $10$

A fumiture company manufactures desks and chairs. Each desk uses $8$ inits of wood. and each chair uses B units of wood. A desk contributes $$400$ io profit and a chair contributes $$250.$ Marketing restrictians require that the number of chairs produced be at least twice the number of desks produced. There are $2000$ units df wood avariable.

The file helow contains the sersitwty roport. Suppose the company can aceuire an addifional $50$ units of wood for $$3,000.$ Based on the sensitivity report, shoud the company buy the $50$ units of wood to increase profits?

IIV $8$it$10$ Sansilivity reont od

a$.$ Yes, the company shouid acqure the edditional $50$ un ts of wacd. Based on the shadow price for wood profits will increase more than $$3,000$ it $50$ addional units of wood are avaiable.

b$.$ ND$,$ the company shoukd not acquire the additional $50$ units of wood. The shadow price of wood is $45,$ and therefore profits will nol increase crough to cover the cost of the additional wood.

c$.$ No$,$ the company should nol acquire the adoitional $50$ units of wood since both reduced costs are equal $100.$

d$.$ Yes, the campany should acqurn the additional so units of wood since the allowable decrease for chairs is equal lo $450$