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The following is a linear programming model for analyzing the product mix of Maxine's Hat Company, which produces three hat types: Maximize: Z = $

The following is a linear programming model for analyzing the product mix of Maxine's Hat Company, which produces three hat types: Maximize: Z=$ 7 X_1+$ 8 X_2+$ 6 X_3 Subject to: 2 X_1+4 X_2+2 X_3<=120(machine A time)5 X_1+3 X_2+2 X_3<=400(machine B time)2 X_1+2 X_2+4 X_3<=110(machine C time) X_1>=0, X_2>=0, and X_3>=0 The POM for Windows printout below shows the optimal solution to the problem. (a) Results Screen (b) Ranging screen Consider each of the following statements independently, and state whether it is true or false. Explain each answer. A. Unknown, because the optimal value of Hat 3 should be recalculated with the new selling price. B. False, because the optimal value of Hat 3 would remain at its current value until its price increases above $ 13.00. C. True, because the reduced cost of Hat 3 is $ 7.00. D. True, because the price of Hat 3 increased more than 50% of its current price.

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