Brax Ltd produces two products, Max and Rux. Budgeted data relating to these products on a unit basis for February are as follows: Max Rux N$ N$ Selling price 150 100 Materials 80 30 Sales commission 30 20 Each unit of the products incurs costs of machining and assembly. The total capacity available in August is budgeted to be 7 000 hours of machining and 1000 hours of assembly, the cost of this capacity being fixed at N$ 7 000 and N$ 10 000 respectively for the month. The number of hours required in each of these departments to complete one unit of output is as follows: Max Rux Machining 1.0 2.0 Assembly 2.5 2.0 Under the terms of special controls recently introduced by the government in accordance with requirements of the Competition Commission, selling prices are fixed and the maximum permitted output of either product in February is 400 units (i.e. Brax Ltd may produce a maximum of 800 units). At the current controlled selling prices the demand for the products exceed this limit considerably. REQUIRED: Marks 12.1. Calculate Brax Ltd.’s optimal production plan for February and the profit earned using the graphical method of linear programming. 16 12.2. Is there a shadow price in any of the constraints in your optimal solution? If so, calculate and interpret it by saying what it means to management.