Variables Objective Function Coefficients Pine Wood Constraint

x (Standard Desks) 250 70

y (Deluxe Desks) 350 50
Pine Wood Available 5000
Oak Wood Available
Labor Hours Available
Non-negativity

Objective Function
Maximize Z = 250x + 350y

Constraints
Pine Wood: 70x + 50y ≤ 5000
Oak Wood: 20y ≤ 750
Labor Hours: 10x + 18y ≤ 400
Non-negativity: x ≥ 0, y ≥ 0
Oak Wood Constraint Labor Hours Constraint
0 10
20 18

750
400
 Variables Price Per Share Expected Return Per Share Total Budget Constraint
x_A (Stock A) 12 8 2500
x_B (Stock B) 15 7 2500
x_C (Stock C) 30 11 2500
Total Budget Available 2500
Non-negativity & Integrality
Objective Function
Maximize Total Return = 8x_A + 7x_B + 11x_C

Constraints
Budget: 12x_A + 15x_B + 30x_C ≤ 2500
Non-negativity: x_A ≥ 0, x_B ≥ 0, x_C ≥ 0
Integrality: x_A, x_B, x_C are integers
rn = 8x_A + 7x_B + 11x_C

_B + 30x_C ≤ 2500
≥ 0, x_B ≥ 0, x_C ≥ 0
x_C are integers
Optimal Solution

Description Value Unit

Standard Desks (x) 40 desks

Deluxe Desks (y) 0 desks
Profit 10000 USD
Constraint Analysis
Resource Constraint Value Used Slack
Pine Wood 5000 2800 2200
Oak Wood 750 0 750
Labor 400 400 0
Decision Variables Price per Share Return per Share Number of Shares Total Cost
Purchased

x 12 8
y 15 7
z 30 11
#VALUE! #VALUE!
Total Return Budget Constraint

$2,500
1. Elevating the production of deluxe desks is advantageous, potentially increasing profits by $100 for each
unit, until it is limited by other factors.
2. The optimal solution remains unchanged with a 25% reduction in pine because it is not currently a limiti
with the actual usage not reaching the allowed maximum.
3. It's advantageous to authorize an additional 50 hours of labor at $18 per hour, as each hour's labor cont
the bottom line.
4. Enhancing the profit margin on standard desks to $280 would boost the overall profit by $1,200, as this
extra $30 profit per desk for the 40 desks made.
5. Reducing the profit per standard desk to $190 would lead to a $2,400 decrease in total profit and could
reassessment of the production mix, since the drop in profit surpasses the present reduction in cost.
profits by $100 for each additional
is not currently a limiting factor,
each hour's labor contributes $25 to
rofit by $1,200, as this results in an
n total profit and could necessitate a
reduction in cost.
1. Return on Investment for Stock B when Fully Invested
- Currently, no shares of stock B have been purchased, resulting in a final value of 0. However, by increasing the re
coefficient) of stock B by at least 3 units, from 7 to 10, it could potentially become part of the best investment strat
allowable increase of 3 and aiming to eliminate its reduced cost of -3.
2. Required Return Increase for Stock C for Full Investment
- In a similar manner, no shares of stock C have been acquired, resulting in a reduced cost of -9. To fully invest in s
must increase by a minimum of 9 units, from 11 to at least 20, to make the reduced cost zero or positive.

3. Shadow Price for the Total Investment Constraint

- The shadow price, which is approximately 0.67, indicates that for every additional dollar available for investmen
objective value (presumably total return) would increase by about 67 cents. For instance, if a student can borrow $
annual interest rate, they would incur an $80 cost. However, based on the shadow price's suggestion of a $667 incr
objective value for an extra $1,000 investment, the net benefit would be $587. Therefore, it is advisable to conside
because the return on investment surpasses the interest expense.
ever, by increasing the return (objective
he best investment strategy, considering the

t of -9. To fully invest in stock C, its return

ero or positive.

r available for investment, the overall

f a student can borrow $1,000 at an 8%
suggestion of a $667 increase in the
it is advisable to consider borrowing