Chapter 5.2, Problem 1P

Explanation of Solution

a.

Profit

• Here 40 acres of land are available and the allowable decrease is 6.6667acres.
• Thus the current basis remains optimal.
• The shadow price for the constraint is 75.
• Hence the new optimum solution is $\text{z}$ $4250$

Explanation of Solution

b.

Optimal solution

• Optimal solution is still to plant 25 acres of wheat and 20 acres of corn and use 350 labor hours.
• The new profit is

  $·NewProfit=130\left(25\right)+200\left(20\right)\text{ - }10\left(350\right)=\$3750$

Explanation of Solution

c.

Allowable increase and Allowable decrease

• In this case allowable decrease is the slack value which is 15.
• The allowable increase value is infinity...