Kane Manufacturing Has a Division That Produces Two Models of Fireplace

question 121

Multiple Choice

Kane Manufacturing has a division that produces two models of fireplace grates, model A and model B. To produce each model A grate requires 3 lb of cast iron and 6 min of labor. To produce each model B grate requires 6 lb of cast iron and 3 min of labor. The profit for each model A grate is $2, and the profit for each model B grate is $1.50. 1,170 lb of cast iron and 21 labor-hours are available for the production of grates each day. Because of an excess inventory of model A grates, management has decided to limit the production of model A grates to no more than 210 grates per day. How many grates of each model should the division produce daily to maximize Kane's profits? ​
Find the range of values that the resource for cast iron can assume without changing the optimal solution. Find the shadow price for the resource for cast iron. Round your answer to the nearest cent.
​

• A) Range: shadow price: $0.11
• B) Range: shadow price: $0.57
• C) Range: shadow price: $0.57

---

Definitions:

Proximity

The physical closeness or distance between two or more entities, often influencing their interactions or relationships.

Self-Disclosure

The act of revealing personal information about oneself to others, fostering intimacy and understanding in relationships.

Altruism

Altruism is the selfless concern for the well-being of others, often leading to acts of kindness without expectation of reward.

Attribution Theory

A theory focused on how people explain the causes of behavior and events, attributing them to internal dispositions or external situations.