ChemLabs uses raw materials I and II to produce two domestic cleaning solutions, A and

B. The daily availabilities of raw materials I and II are 150 and 145 units, respectively.

One unit of solution A consumes .5 unit of raw material 1 and .6 unit of raw material 11, and one unit of solution Buses .5 unit of raw material 1 and .4 unit of raw material 11. The prices per unit of solutions A and Bare $8 and $10, respectively. The daily demand for solution

A lies between 30 and 150 units, and that for solution B between 40 and 200 units.

(a) Find the optimal amounts of A and B that ChemLab should produce.

(b) Use the dual prices to determine which demand limits on products A and B should be relaxed to improve profitability.

(c) If additional units of raw material can be acquired at $20 per unit, is this advisable?

Explain.

(d) A suggestion is made to increase raw material II by 25% to remove a bottleneck in production. Is this advisable? Explain.