Kane Manufacturing has a division that produces two models of fireplace grates, model A and model B. To produce each model A grate requires 3 lb of cast iron and 6 min of labor. To produce each model B grate requires 6 lb of cast iron and 3 min of labor. The profit for each model A grate is $2, and the profit for each model B grate is $1.50. 1,170 lb of cast iron and 21 labor-hours are available for the production of grates each day. Because of an excess inventory of model A grates, management has decided to limit the production of model A grates to no more than 210 grates per day. How many grates of each model should the division produce daily to maximize Kane's profits?
Find the range of values that the resource for cast iron can assume without changing the optimal solution. Find the shadow price for the resource for cast iron. Round your answer to the nearest cent.

A) Range: shadow price: $0.11
B) Range: shadow price: $0.57
C) Range: shadow price: $0.57

Question

Kane Manufacturing has a division that produces two models of fireplace grates, model A and model B. To produce each model A grate requires 3 lb of cast iron and 6 min of labor. To produce each model B grate requires 6 lb of cast iron and 3 min of labor. The profit for each model A grate is $2, and the profit for each model B grate is $1.50. 1,170 lb of cast iron and 21 labor-hours are available for the production of grates each day. Because of an excess inventory of model A grates, management has decided to limit the production of model A grates to no more than 210 grates per day. How many grates of each model should the division produce daily to maximize Kane's profits? ​
Find the range of values that the resource for cast iron can assume without changing the optimal solution. Find the shadow price for the resource for cast iron. Round your answer to the nearest cent.
​
A) Range: shadow price: $0.11 
B) Range: shadow price: $0.57 
C) Range: shadow price: $0.57

Quizplus · Accepted Answer

The Answer of Kane Manufacturing has a division that produces two models of fireplace grates, model A and model B. To produce each model A grate requires 3 lb of cast iron and 6 min of labor. To produce each model B grate requires 6 lb of cast iron and 3 min of labor. The profit for each model A grate is $2, and the profit for each model B grate is $1.50. 1,170 lb of cast iron and 21 labor-hours are available for the production of grates each day. Because of an excess inventory of model A grates, management has decided to limit the production of model A grates to no more than 210 grates per day. How many grates of each model should the division produce daily to maximize Kane's profits? ​
Find the range of values that the resource for cast iron can assume without changing the optimal solution. Find the shadow price for the resource for cast iron. Round your answer to the nearest cent.
​
A) Range: shadow price: $0.11 
B) Range: shadow price: $0.57 
C) Range: shadow price: $0.57

Kane Manufacturing Has a Division That Produces Two Models of Fireplace