The company wants to add another process, process VI. It yields 2 of A, 5 of B, and 6 of C. The variable cost of process VI is PhP44.00 per batch. Should the company utilize process VI? It requires 1 hour of skilled labor and 1 hour of machine time.

1. How much change in the variable cost for process VI to make it profitable?
2. If the variable cost becomes PhP38, should the company use Process VI? If yes, how much increase in profit can it give each time Process VI is used?

A firm can produce 3 products (A, B, C) using anyone of five different processes (I, II, III, IV, and V). The table below summarizes the yields of A, B, and C from one batch started in each process. The selling prices of each product, the skilled labor required to complete a batch, and the variable cost of completing a batch by each process are shown. Due to a contract requirement the company must produce at least 110 units of product A/day. The optimal solution for the problem: xB=x1x2x5=26168xN=x3x4S1S2S3b=1108050B=301241021N=462411100010001CB=(203045)CN=(405000)B1=1/51/52/51/53/101/102/53/56/5CBB1NCN=(1915/281/244)z=1360 Let xi= number of batches started in process i(i1 to 5) S1= surplus variable for the daily production requirement for product A S2,S3= slack variables for Skilled Labor and Machine Time, respectively