Resources	table	chair
Labor	0.75	2
Leather	0.7	15
Inner plastic lining	0.5	2
Total demand	1500	1200

A lumber shop produces two high end products: tables and chairs. These products can be produced either in shop A or in shop B. The cost of manufacturing the table and chair in shop A is $20 each, and the cost of manufacturing the table and chair in the shop B is $25 each. The amounts of labor, leather, inner plastic lining, and the demand requirements are given above. Based on the information about the company, we know that the maximum labor hours available in the shop A are 5,000 hours per month and 2,000 hours per month for the shop B. The maximum amount of leather available for shop A is 15,000 pounds per month and 14,000 pounds per month for the shop B. The maximum amount of inner plastic lining available for the shop A is 2,000 pounds per month and 1,500 pounds per month for the shop B. Formulate the given scenario as a linear program so as to minimize the production cost and determine the number of tables and chairs made by this company. Solve the problem using Solver in excel. For the formulation, provide a complete description of the decision variables used along with their units and also label the constraints mentioned in the problem, as completely as possible. Your spreadsheet model setup should provide clearly labeled values used for decision variables, constraints and objective function.

(1) (2 points) How many small and large offices should the developer build? (2) (4 points) What is the total optimal monthly revenue? (3) (2 points) If the developer implements the optimal solution, what amount of square footage would remain unused? (4) (5 points) What is the impact on the optimal allocation of offices and the objective function value if small offices can be rented for $800 per month rather than $600 per month? (5) (2 points) What impact would an increase in 52,800 sq. ft of additional footage have on the optimal objective function value? (6) (5 points) What impact will an increase in the monthly rental of small offices to $650 and simultaneous decrease to $800 in the monthly rental of large offices have on the current optimal solution and the objective function value?