What is the optimal profit in the case


Problem

A. Write down the optimal solution for x1 , x2 , x3 and the corresponding optimal profit z .

B. Management has decided to decrease the price of fertilizer A. The profit contribution will decrease from $50 to $40 for each pound of fertilizer A produced. Will the optimal point change? Why? What is the optimal profit in this case?

C. Instead of decreasing the price of fertilizer A, the management increases the RHS value of the second constraint by 30 units, will the optimal point change? Why? What is the optimal profit in this case?

D. How much would you be willing to pay for an additional unit of Resource 1? Explain.

E. How much would you be willing to pay for an additional unit of Resource 3? Explain.

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Business Management: What is the optimal profit in the case
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