# Carco manufactures cars and trucks. Each car contributes \$300 to profit and each truck, \$400. The…

Carco manufactures cars and trucks. Each car contributes \$300 to profit and each truck, \$400. The resources required to manufacture a car and a truck are shown in Table 53. Each day, Carco can rent up to 98 Type1 machines at a cost of \$50 per machine. The company now has 73 Type 2 machines and 260 tons of steel available. Marketing considerations dictate that at least 88 cars and at least 26 trucks be produced. Let X1 = number of cars produced daily
X2 = number of trucks produced daily
M1 = type 1 machines rented daily To maximize profit, Carco should solve the LP given in Figure 11. Use
Carco manufactures cars and trucks. Each car contributes \$300 to profit and each truck, \$400. The resources required to manufacture a car and a truck are shown in Table 53. Each day, Carco can rent up to 98 Type1 machines at a cost of \$50 per machine. The company now has 73 Type 2 machines and 260 tons of steel available. Marketing considerations dictate that at least 88 cars and at least 26 trucks be produced. Let X1 = number of cars produced daily
X2 = number of trucks produced daily
M1 = type 1 machines rented daily To maximize profit, Carco should solve the LP given in Figure 11. Use the LINDO output to answer the following questions: a. If cars contributed \$310 to profit, what would be the new optimal solution to the problem?
b. What is the most that Carco should be willing to pay to rent an additional Type 1 machine for 1 day?
c. What is the most that Carco should be willing to pay for an extra ton of steel?
d. If Carco were required to produce at least 86 cars, what would Carcos profit become?
e. Carco is considering producing jeeps. A jeep con-tributes \$600 to profit and requires 1.2 days on machine1, 2 days on machine 2, and 4 tons of steel. Should Carco produce any jeeps?

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