Reference no: EM131707649

A furniture company manufactures tables and chairs. A table requires 40 board feet of wood, and a chair requires 30 board feet of wood. Wood can be purchased at a cost of $1.50 per board foot, and 40,000 board feet of wood are available for purchase. It takes two hours of skilled labor to manufacture an unfinished table or an unfinished chair. Three more hours of skilled labor will turn an unfinished table into a finished table, and two more hours of skilled labor will turn an unfinished chair into a finished chair. A total of 5000 hours of skilled labor is available (and have already been paid for). All furniture produced can be sold at the following unit prices: an unfinished table, $130; a finished table, $220; an unfinished chair, $80; a finished chair, $175 1. Determine how to maximize the companys profit from manufacturing tables and chairs. Include the Solver solution screen-shot with your worksheet. 2. Answer the following questions with figures and description: (a) Suppose the furniture company is able to buy 10,000 more board feet of lumber. What is the MAXIMUM amount that the company should be willing to pay for this additional material? (b) By how much can the number of available labor hours be DECREASED and still maintain the structure of the current optimal solution? What would be the corresponding CHANGE in the objective function value? (c) How much slack do you have in the Board Feet used constraint? (d)How much slack in the Total Labor hours used constraints? (e) Why?