Question 3 Cooler Bags Namibia (CBN) manufactures two types of cooler bags, the Cool and the Ice. Each Cool bag sells for N$200 while each Ice bag sells for N$210. Market research has indicated that a maximum of 1 000 units are required for the Cool bag while a maximum of 3 000 units are required for the Ice. The following information relates to the production costs of the two bags: Ice Material (N$2.50 per kg) Variable overheads (N$7 per hour) Cool NS 20 28 NS 25 35 Hours per unit 10 Hours per unit 5 Labour (NS4 per hour) CNB has estimated that resources needed to produce the cooler bags shall be limited as follows in the next coming period: Materials 31 000kg Labour 20 000 labour hours Variable overheads 17 500 machine hours Mark Sub- Total total 18 18 6 Requirement Determine the combination of Cool and Ice that will maximise the 3.1 total profit using the graphical method of linear programming. 3.2 Construct an extended model which can be solved by means of the simplex method. 3.3 Explain under what circumstances preference will be given to use graphical or simplex methods. Note: Show all the necessary workings or steps that are required to reach the answer. Marks are available for these. Total 24 1 25 25