Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 15

Interpret the meaning of the Lagrange multiplier in Problem.
Problem
The Riverwood Paneling Company makes two kinds of wood paneling: Colonial and Western. The company has developed the following nonlinear programming model to determine the optimal number of sheets of Colonial paneling ( x 1 ) and Western paneling ( x 2 ) to produce to maximize profit, subject to a labor constraint:

Determine the optimal solution to this nonlinear programming model.