27. Given below is a table obtained after a few iterations using simplex method to solve a linear programming problem to maximise total contribution margin from products A and B:

Give short answers to the following questions giving reasons as well:

(i) Is the above solution optimal?
(ii) Is the above solution feasible?

(iii) Does the problem have alternative optimal solution? If so, find another optimal solution

(iv) Write the objective function of the problem.
(v) What are the shadow prices for the three resources?
(vi) If S represents the slack for the production capacity constraint, how much should the company be willing to pay for each additional unit of production capacity?
(vii) S3 represents the slack for demand constraint. If the company is able to increase its total demand by 20 units, what will be the optimal mix and total contribution margin?

Transcribed Image Text:

8.5 10.5 0 0 0 C Mix Total x1 x2 S S $3 X2 300 0 1 3/5 -2/5 0 x1 300 0 -2/5 3/5 0 $3 400 0 0 -1/5 -1/5 1