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Wild West produces two types of cowboy hats. Type 1 hat requires twice as much labor time as a Type 2 . If all the

Wild West produces two types of cowboy hats. Type 1 hat requires twice as much labor time as a Type 2. If all the available labor time is dedicated to Type 2 alone, the company can produce a total of 400 Type 2 hats a day. The respective market limits for the two types are 150 and 200 hats per day. The revenue is $8 per Type 1 hat and $5 per Type 2 hat.
(a) Use the graphical solution to determine the number of hats of each type that maximizes revenue.
(b) Determine the dual price of the production on capacity (in terms of Type 2 hat) and the range for which it is applicable.
(c) Determine the optimality range for the unit revenue ratio of the two hats that will keep the current optimum unchanged.

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