Tom's, Inc., produces various Mexican food products and sells them to Western Foods, a chain of grocery stores located in Texas and New Mexico. Tom's, Inc., makes two salsa products: Western Foods Salsa and Mexico City Salsa. Essentially, the two products have different blends of whole tomatoes, tomato sauce, and tomato paste. The Western Foods Salsa is a blend of 50% whole tomatoes, 30% tomato sauce, and 20% tomato paste. The Mexico City Salsa, which has a thicker and chunkier consistency, consists of 70% whole tomatoes, 10% tomato sauce, and 20% tomato paste. Each jar of salsa produced weighs 10 ounces. For the current production period, Tom's, Inc., can purchase up to 280 pounds of whole tomatoes, 130 pounds of tomato sauce, and 100 pounds of tomato paste; the price per pound for these ingredients is $0.96, $0.64, and $0.56, respectively. The cost of the spices and the other ingredients is approximately $0.10 per jar. Tom's, Inc., buys empty glass jars for $0.02 each, and labeling and filling costs are estimated to be $0.03 for each jar of salsa produced. Tom's contract with Western Foods results in sales revenue of $1.64 for each jar of Western Foods Salsa and $1.93 for each jar of Mexico City Salsa.

Letting W = jars of Western Foods Salsa, M = jars of Mexico City Salsa leads to the following formulation:

The sensitivity report is shown in figure below:

PLEASE ANSWER THE FOLLOWING by filling in the Blanks _____ :

a. What is the optimal solution, and what are the optimal production quantities?

W	______
M	______
Profit	______

b. Specify the objective coefficient ranges. If there is no lower or upper limit, then enter the text "NA" as your answer.

Variable	Obj. Coefficient Range	Obj. Coefficent Range
	Lower Limit	Upper Limit
Western Foods Salsa	____________	____________
Mexico City Salsa	____________	____________

c. What are the shadow prices for each constraint?

Constraint	Shadow Price
Whole Tomatoes	___________
Tomato Sauce	___________
Tomato Paste	___________

d.Interpret each shadow price.

_________________________________

e. Identify each of the right-hand-side ranges. If there is no lower or upper limit, then enter the text "NA" as your answer.

Constraint	Right hand side range	right hand side range
	lower limit	upper limit
Whole tomatoes	________________	________________
Tomato sauce	________________	________________
Tomato paste	________________	________________

FIGURE 8.16 SENSITIVITY REPORT FOR THE TOM'S INC., PROBLEM Variable Cells Model Final Reduced Objective Allowable Allowable Value Coefficient Variable Name Cost Increase Decrease 560.000 0.250 0.107 Western Foods Salsa 1.000 1.250 0.150 0.250 240.000 Mexico City Salsa M 0.000 Constraints Constraint Allowable Allowable Constraint Final Shadow R.H. Side Increase Number Name Value Price Decrease Whole tomatoes 0.125 1120.000 4480.000 4480.000 160.000 2080.000 1E +30 1920.000 160.000 Tomato sauce 0.000 40.000 0.188 320.000 1600.000 Tomato paste 1600.000