The answer is given from part a that is needed to answer part d.

2) La Petit Fort, a forest company located in the French Alps, hopes to more efficiently utilize the wood resources in its company forests. The company owns a sawmill and a plywood mill, and it specializes in softwood lumber and plywood. Producing a marketable mix of 100 m of lumber requires inputs of 100 m' of Norway spruce and 300 m of Scotch pine logs. On the other hand, 200 m of spruce and 400 m of pine are required for the production of 100 m of 1-cm plywood. The company's expected harvest during the coming 6-month planning period amounts to 3200 m of spruce and 7000 m of pine. Sales commitments require that at least 400 m of lumber and 1200 m of plywood be produced during the planning period. According to the accounting department, contributions to profit from sales of these goods average 2000 Euros for each 100 m of lumber and 3000 Euros for each 100 m of plywood produced. The company wishes to maximize profits. d) Answer the following questions (explain your answer): i) If the company could purchase an additional 100 m of Norway spruce for 400 Euros, should they? Explain your answer. ii) If the company could purchase an additional 300 m of Scotch pine logs for 1100 Euros, should they? Explain your answer. iii) If the profit from lumber was actually 2300 Euro for each 100 m, would the same amount of lumber and plywood be produced? iv) If the profit from plywood was actually 2700 Euro for each 100 m, would the same amount of lumber and plywood be produced? ANSWER- MAXIMUM PROFIT = 51,000 EUROS SOFTWOOD LUMPER PRODUCED = 600m PLYWOOD PRODUCED = 1300m2 SOLUTION- 2 m Gran X Axis ! (cm - 2 100m3) Y axis! icm= I (100m2) constraints ? + 24 632 32 +y KO ;H72 101 Cana = (6913) point 14,14) (7.33,12) It (LD) 16,13) . 12) (12) coom2 plywood (9) 110 11.33,13 00 units of units of 100 m3 100 m2 softwood lumber = x plywood - y Spruce constraint : (00 + 2004 50666.67 eWOS # Profit maximum at (6113) Maximum profit 51,000 EWOS 600 m3 # Lumber = 6x 100 m3 Plywood = 13x100m? 2. 1300 m 2 # To maximize profit , 000m3 g lumber and 1300 m2 o plywood must be produced, 2 Maximum Profit 51,000 Euros