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Question 4 A company manufactures two models of a product, which we call the regular model and the enhanced model. Two resources, A and B,

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Question 4 A company manufactures two models of a product, which we call the regular model and the enhanced model. Two resources, A and B, are needed for the manufacturing of units of this product; and the detailed resource requirements are given in the following table Regular Model Enhanced Model Resource A 3 4 Resource B 2 3 This means, for example, 3 units of Resource A and 2 units of Resource B are consumed in the manufacturing of each unit of the regular model. The resources could represent hours of labor, amounts of raw material, available electrical power, and so on. Suppose further that the company has 650 units of Resource A and 500 units of Resource B available per week, and that the net profits for selling units of the regular model and the enhanced model are given respectively as $5 and $7 per unit. The question of interest is that, the company wants to know the optimal weekly production levels for these two models? a) Use the simplex method to solve the problem (10 marks) b) From the simplex method solution, what should be the optimal weekly production for the two models? (5 marks) e) Are all constraints binding? If yes give reason for your answer (10 marks)

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