Question: A garden store prepares various grades of pine bark for mulch: nuggets, mini-nuggets, and chips, with profits of $5.50, $4.25, and $6.75 per bag respectively.
A garden store prepares various grades of pine bark for mulch: nuggets, mini-nuggets, and chips, with profits of $5.50, $4.25, and $6.75 per bag respectively. The mulching process requires pine bark (400 pounds available), machine time (440 minutes available), labor time (475 minutes available). Each bag of nuggets requires 2 pounds of bark, 2 minutes of machine time and 3 minutes of labor. Each bag of mini-nuggets requires 2.5 pounds of bark, 1 minutes of machine time and 2 minutes of labor. Each bag of chips requires 3 pounds of bark, 2 minutes of machine time and 1 minutes of labor. The garden store is committed to producing at least 30 bags of chips, and 40 bags of mini-nuggets.
a. How many bags of each type of mulch should be made to maximize profit? Nuggets = [ Select ] ["126.43", "120.67", "105.0", "110.45", "75.0"] , mini-nuggets = [ Select ] ["50", "25", "40", "0", "75"] , chips = [ Select ] ["30.0", "15.71", "75.8", "22.9", "0"]
b. What is the optimal profit? [ Select ] ["$895.71", "$1,050.50", "$950.00", "$971.43", "$1,275.30"]
c. For this solution, what is the marginal value (shadow price) of a pound of pine bark? [ Select ] ["1.546", "2.107", "0 - it is an unused resourse", "1.68", "2.75"]
d. What is the marginal value (shadow price) of machine time? [ Select ] [".71", "0", "1.12", ".75", "1.50"]
e. What impact would decreasing labor hours by 30 have on the overall profit? [ Select ] ["there would be no impact based on having unused resources", "profit would decrease to an overall of $995", "profit would decrease at around $13.00", "profit would increase by $8.57", "profit would increase by $112.89"]
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
