Set up the above LP in Excel Solver. How many bags of each type should be produced and what is the maximal profit? Please refer to excel file posted on Canvas.
b)Which constraints are binding?
c)What is the shadow price for peanuts? Interpret the shadow price.
d)Increase the amount of peanuts by 1 pound and re-solve. Does the solution confirm the answer to part (c)? Give the new solution.
Problem 3. Tom’s Inc. makes two salsa products: Western Foods salsa and Mexico City salsa. Essentially, the two products have different blends of whole tomatoes, tomato sauce, and tomato paste. A jar of Western Foods salsa uses 5 ounce of whole tomatoes, 3 ounces of tomato sauce, and 2 ounces of tomato paste. A jar of Mexico City salsa consists of 7 ounces of whole tomatoes, 1 ounce of tomato sauce, and 2 ounces of tomato paste. For the current production period Tom’s Inc. can purchase up to 4480 ounces of whole tomatoes,