# A company produces two products, A and B. The unit revenues are $2 and $3, respectively. Two

## Question:

Two raw materials, M1 and M2, used in the manufacture of the two products have respective daily availabilities of 8 and 18 units. One unit of A uses 2 units of Ml and 2 units of M2, and 1 unit of Buses 3 units of Ml and 6 units of M2.

(a) Determine the dual prices of Ml and M2 and their feasibility ranges.

(b) Suppose that 4 additional units of Ml can be acquired at the cost of 30 cents per unit. Would you recommend the additional purchase?

(c) What is the most the company should pay per unit of M2?

(d) If M2 availability is increased by 5 units, determine the associated optimum revenue.

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