# How many bags of each type should be produced and

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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,
4 2080 ounces of tomato sauce, and 1600 ounces of tomato paste. Tom’s Inc. makes a profit of \$1.00 per jar of Western Foods salsa and \$1.25 per jar of Mexico City salsa. The following linear optimization model was used to determine the mix of salsa products that will maximize the total profit contribution. Let W be the number of jars of Western Foods Salsa M be the number of jars of Mexico City Salsa Maximize 1W + 1.25M Subject to 5W + 7M ≤ 4480 (Whole tomatoes)3W + 1M ≤ 2080 (Tomato sauce)2W + 2M ≤ 1600 (Tomato paste) W, M ≥ 0The problem was solved in Excel and the sensitivity report is shown below. Answer the following questions based on the sensitivity report. (If a question can’t be answered using the sensitivityreport say so. You don’t need to change the model and solve it.) a)How many jars of Western Foods Salsa should Tom’s produce?