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Graphically solve the following problem:
Maximize profit = 8X1 + 5x2
Subject to X1 + X2 ≤ 10
X1 ≤ 6
X1, X2 ≥ 0
What is the optimal solution mix? What is the profit at that mix?
What is the Shadow Price for constraint 1? Over what range is this Shadow Price valid? In your Excel model change the right-hand constraint (10) by 1 (now 11) and solve the problem again. What is the profit now?
Change constraint 1's RHS (10) to 6. What happened? By how much did the profit decrease? Is that in line with what the Shadow Price information would tell us?
Change constraint 1's right-hand side (10) to 5? What happened?
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