#5. Kilgore’s Deli is a small delicatessen located near a major university. Kilgore’s does a large walk-in carry-out lunch business. The deli offers two luncheon chili specials, Wimpy and Dial 911. At the beginning of the day, Kilgore needs to decide how much of each special to make (he always sells out of whatever he makes). The profit on one serving of Wimpy is $.45, on one serving of Dial 911, $.58. Each serving of Wimpy requires .25 pound of beef, .25 cup of onions, 5 ounces of Kilgore’s special sauce. Each serving of Dial 911 requires.25 pound of beef, .4 cup of onion, 2 ounces of Kilgore’s special sauce, and 5 ounces of hot sauce. Today, Kilgore has 20 pounds of beef, 15 cups of onions, 88 ounces of Kilgore’s special sauce, and 60 ounces of hot sauce on hand. d. What is the shadow price for special sauce?e. Which of the following is the correct interpretation of the shadow price?f. What is total profit made at the optimal solution allowing a one unit increase in special sauce?
#5. Kilgore’s Deli is a small delicatessen located near a major university. Kilgore’s does a large walk-in carry-out lunch business. The deli offers two luncheon chili specials, Wimpy and Dial 911. At the beginning of the day, Kilgore needs to decide how much of each special to make (he always sells out of whatever he makes). The profit on one serving of Wimpy is $.45, on one serving of Dial 911, $.58. Each serving of Wimpy requires .25 pound of beef, .25 cup of onions, 5 ounces of Kilgore’s special sauce. Each serving of Dial 911 requires.25 pound of beef, .4 cup of onion, 2 ounces of Kilgore’s special sauce, and 5 ounces of hot sauce. Today, Kilgore has 20 pounds of beef, 15 cups of onions, 88 ounces of Kilgore’s special sauce, and 60 ounces of hot sauce on hand.
d. What is the shadow price for special sauce?
e. Which of the following is the correct interpretation of the shadow price?
f. What is total profit made at the optimal solution allowing a one unit increase in special sauce?
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