Question: Use the sensitivity report provided on the next page to answer the following questions. The model represents a profit maximization problem looking for the best

Use the sensitivity report provided on the next page to answer the following questions. The model represents a profit maximization problem looking for the best combination of enterprises to produce.

Q1. What is the gross margin for this problem?

Q2. What commodities should you produce to optimize profit?

Q3. What commodities do you not produce based on the output of the model?

Q4. If you decided to increase the number of stockers by one, how would that impact profit?

Q5. Suppose you found a better contract for stockers, and the GM increased to $110/hd. Would this change the optimal solution? Why or why not? Would this change your total profit? Why or why not?

Q6. If the gross margin for corn on Class A land decreased to $100/ac, would this change the optimal solution? Why or why not? Would this change your total profit? Why or why not?

Q7. What constraints are binding?

Q8. Suppose the neighbor down the road offered to intern for $10/hr. How many hours are you willing to hire them for?

Q9. Suppose the neighboring farm offered to let you lease a 400 acre field of Class B Cropland at $30/ac. Are you willing to make this agreement? Why or why not?

Use the sensitivity report provided on the next page to answer the

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