Question

Meredith wants to maximize her profits from selling items for the Aggie REPS. She can earn $5 profit for selling fleeces and $7 profit for selling t-shirts. She is limited by his time; it takes 2 hours to make a sale of a fleece and 4 hours for a t-shirt, while she only has 40 hours to devote to sales. Meredith is also subject to the limits of the manufacturer. They have a limit of 42 hours to make the items with fleeces taking 6 hours and t shirts taking 3 hours. Meredith must sell at least 3 fleeces to keep her position with the Aggie REPS.

1. What is the standard format for this problem?
   

2. How many fleeces and t-shirts will Meredith sell? How much money will she make?
   

3. What is the shadow price on manufacturing? What does this value mean?
   
   

4. What is a one sentence interpretation of the reduced cost of fleeces?

Answer 1

Doubt in this then comment below...i will help you..

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please thumbs up for this solution...thanks.

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so here ,

no of fleeces = 3

no of tshirts = 8

money make = 71

shadow price of manufacturing = 7/3

it means that if we increase 1 hour of available manufacturing time....the profit will increase by 7/3