Question: can you clarify which option is the answer after solving it? A company that manufactures three products, A. &, and using three machines, M1, M2,
can you clarify which option is the answer after solving it?
A company that manufactures three products, A. &, and using three machines, M1, M2, and M3, wants to determine the optimal production schedule that maximizes the total profit. Product A has to be processed by machines M1, M2, and M3, product Brequires M1 and M3, while product requires M1 and M2. The unit profits on the three products are $7, 58, and $8, respectively. The following linear program is formulated to determine the optimal product mic Maximize s.t. Z-7x, + 8x28x3 xy + 2x2 + x3 s 430 (Machine 1) 3x: + 2xy S 460 (Machine 2) $ 450 (Machine 3) where e X1, X3, and xy are the amounts of products AB, and C and the constraints reflect the available capacities of M1, M2, and M3. The optimum solution for the problem is as follows: (following figures are hypothetical) optimal solution: xy = 0, X2 = 150, X3 - 290 optimal value maximum profit, 2 - 1860 shadow prices 6.0.7.0, and 0.0 for constraints 1, 2 and 3 respectively reduced costs for X, 8.0, for xy - 0, for 3 - 0 RANGES ON RIGHT HAND SIDE (RHS) CONSTRAINTS Row Lower Limit Present Value Upper Limit 230 430 455 2 410 460 860 400 450 RANGES ON OBJECTIVE FUNCTION COEFFICIENTS Variable Lower Limit Present Value Upper Limit X1 7.0 7.0 X2 0 10.0 X3 3.0 8.0 8.0 Using the above information answer the following question: Suppose that the capacity of machine 2 can be increased by another 200 minutes at a cost of $250. Is it economical to do so? Select the correct answer. Yanitiniz: An increase in machine 2 capacity will change Z by 7x200 - 1400 dollars. Since the cost of $250 is less than $1400, it is economical to increase machine 2 capacity. O An increase in machine 2 capacity will change 2 by 2 200 - 400 dollars. Since the cost of $250 is less than $400, it is economical to increase machine 2 capacity An increase in machine 2 capacity will change Z by 0x200 -0 dollars. Therefore there is no need to change machine 2 capacity o . An increase in machine 2 capacity will change Z by 150x200 - 30,000 dollars. Since the cost of $250 is less than $24.000, it is economical to increase machine 2 capacity