CNY Furniture manufactures two kind of coffee tables. The first one is a larger table, called Adirondack. Each Adirondack has six table legs and a table top of 18 square feet. The second one is a smaller table, called Bismarck. Each Bismarck has four table legs and a table top of 16 square feet. In order to plan for its monthly production, the management has 420 table legs and 1440 square feet of table top material available for each month.

Due to the recent demand from a local new apartment project, at least 10 Bismarck tables must be manufactured monthly. Furthermore, the limited storage space restricts the monthly production of the larger Adirondack to be no more than 60 Adirondack tables.

Each Adirondack can bring in a net profit of $300 which each Bismarck can bring in $250. CNY Furniture needs to plan for its monthly production that can maximizes its total monthly profit.

1) Formulate this problem as a linear program.

2) Use the graphical solution procedure to solve this linear program graphically for its optimal solution. Report the optimal solution.

3) What is the profit generated by using the above optimal solution?

After you finish the above problem, CNY Furniture decides to drop the price on Bismarck to deal with the fierce competition in the local furniture market. According to the reduced Bismarck price, the revised unit profit is now only $150 for each Bismarck while the unit profit of Adirondack remains unchanged as $300 based on the new sales information.

4) What will be your modified optimal solution based on the revised information?

5) What is the modified profit?