Chapter 3.4, Problem 2E

To determine

(a)

To show:

The time available on machine $\text{II}$ must lie between $90\text{ and 540}\text{min}$.

To determine

(b)

To show:

The time available on the Machine $\text{II}$ is changed from $300\text{ min}$ to $\text{(300+k)}\text{min}$, with the no changes in maximum capacity Machine $\text{II}$, then Ace Novelty’s profit is maximized by producing $\frac{1}{5}(240-k)$ Type A souvenir and $\frac{1}{5}(420+k)$ Type $B$ souvenir, where $-210\le k\le 240$

To determine

(c)

To show:

The shadow price for resource $2$ (associated with constraint $2$ ) is $\$0.28$.