Question: Linear Programing. Please do not solve otherwise. Old Macdonalds 200 acre farm sells wheat, alfalfa, and beef. Wheat sells for $30 per bushel, alfalfa sells
Linear Programing. Please do not solve otherwise.
Old Macdonalds 200 acre farm sells wheat, alfalfa, and beef. Wheat sells for $30 per bushel, alfalfa sells for $200 per bushel, and beef sells for $300 per ton. Up to 1000 bushels of wheat and up to 1000 bushels of alfalfa can be sold, but demand for beef is unlimited. If an acre of land is devoted to raising wheat, alfalfa or beef, the yield and required labor are given below:
CROP YIELD/ACRE LABOR/ACRE
Wheat 50 bushels 30 hours
Alfalfa 100 bushels 20 hours
Beef 10 tons 50 hours
Up to 2000 hours of labor can be purchased at $15 per hour. Each acre devoted to beef requires 5 bushels of alfalfa.
Formulate the problem as an LP model, and determine the acres allocate to wheat (Xw), alfalfa (Xa), and to beef (Xb), as well as the 3 of hours required of labor (XL), the bushes of alfalfa sold (YAS), and the bushes of alfalfa devoted to beef (YAB).
Answer the following questions and justify your answers from the TORA output solution.
- How much must the price of a bushel of wheat increase before it becomes profitable to grow wheat?
- Old Macdonald is offered 2000 bushels of alfalfa at a cost of $150 per bushel. Should Old Macdonald accept this offer? What affect would this have on profit?
- What is the most Old Macdonald is willing to pay for an additional hour of labor?
- Old Macdonald is offered 25 additional acres of land at a cost of $60 per acre. Should Old Macdonald accept this offer? What affect would this have on profit?
- What would be the new solution if alfalfa sold for $20 per bushel?
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