An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin

Exercise 2

Refer to the Par, Inc., problem described in Section 2.1. Suppose that Par's management encounters the following situations:
a. The accounting department revises its estimate of the profit contribution for the deluxe bag to $18 per bag.
b. A new low-cost material is available for the standard bag, and the profit contribution per standard bag can be increased to $20 per bag. (Assume that the profit contribution of the deluxe bag is the original $9 value.)c. New sewing equipment is available that would increase the sewing operation capacity to 750 hours. (Assume that 10 A + 9 B is the appropriate objective function.) If each of these situations is encountered separately, what is the optimal solution and the total profit contribution?